1. Ch. 1: Laws and Their Ethical Foundations
Business Law
Ch. 1: Laws and Their Ethical Foundations

2. What is Law?
Laws are enforceable rules of conduct in a society that reflects the culture and circumstances that create them

3. Codes
Codes are laws grouped into an organized form

4. Stages In the Growth of Law
Individuals are free to take revenge for wrongs done to them.
Injuries inflicted on one human being by another are matters for personal revenge
Those that are wronged feel that justice can be done only through personally punishing the wrongdoers
Example would be Gang Wars

5. Stages In the Growth of Law
A leader acquires enough power to be able to force revenge-minded individuals to accept an award of goods or money instead

6. Stages In the Growth of Law
The leader gives this power to a system of courts
The leader or central authority acts to prevent and punish wrongs that provide individuals to seek revenge.

7. Common Law vs. Positive Law
Laws reflect the wisdom or lack of wisdom of their creators.
Laws should be predictable and flexible
Do you want a lack system or controlling?
Best system evolves slowly toward a form that is most appropriate to the current standards of the people.

8. Common Law vs. Positive Law
Common Law – laws based on the current standards or customs of the people.
Formed from the rules used by judges to settle people’s disputes.
Positive Law – Laws dictated from above

9. Origin of the U.S. Legal System
Roman Civil Law
Laws adopted are written, well organized, comprehensive set of statutes in code form.
Laws can only be changed by the central government.
Louisiana is the only state with a civil law system

10. Origin of the U.S. Legal System
English Common Law
In England, disputes were decided by local customs and enforced by the barons’ power.
Laws were different from region to region.
Made it difficult to follow

11. English Common Law King Henry appointed a number of judges.
Judges were given the power of order wrongdoers to pay with money or goods
Judges would travel during the good-weather months and hold court.
This was called King’s Bench
Baron’s Courts still heard minor cases.
Kings court had jurisdiction – The power to decide cases, over the important cases

12. English Common Law
Judges were instructed to choose citizens from each region to interpret the regions customs for the courts
The panel of citizens is called a jury
Jury consist of 12 people

13. Advantages of English Common Law
Achieves uniformity while maintaining an ability to adapt to changes in society.

14. Alternative to Common Law
Common law courts carefully follow precedent
Precedent means that courts use prior cases as a guide for deciding similar new cases
Help provide stability in the law.
Disadvantage was that courts could only grant remedy for damages
Had to wait until harm actually ahppened.

15. Chancellor
Matter were handed to a chancellor instead of going to the courts
No jury
My issue an injunction (stop something from being done)

16. Source of Laws
Laws in the U. S. are created at all three levels of the government (Federal, State, Local)

17. Forms of Laws
Constitutions
Statutes
Case Law
Administrative Law

18. Forms of Laws Constitutions
Document that set forth framework of a government and its relationship to the people it governs.
When constitutions are adopted or amended, or when courts interprets constitutions – Constitutional Law is created.

19. Forms of Laws Constitutions Highest source of law
“Supreme Law of the Land”
Federal, State, or Local laws is not valid if it conflicts with the federal Constitution.
State Constitution is the Supreme Law over all state laws.

20. Forms of Laws Constitutions
Defines and allocates certain powers in our society.
Allocates powers
Between the people and their government
Between state government and the federal government
Among the branches of the government

21. Allocating Powers between People and their Government
Constitution is the main document for allocating powers between people and their government
Done in the Bill of Rights (first 10 ammendments)

22. Allocating Powers between Federal and State Government
Many governmental powers over business are divided between state governments and the federal governments.
The federal government regulates foreign and interstate commerce.
Interstate Commerce occurs between two or more states.
Intrastate Commerce occurs within one state. Left to the state

23. Allocating Powers among the Branches of the Government
Branches: Executive, Legislative, and Judicial Branches.
Checks and Balance
Ensures that no branch of the government becomes too powerful.

24. Statutes State legislators enacting state laws
Local government set their own local laws
Ordinances
Only effective within boundries

25. Case Law Set by judicial branch
Is made after a trial has ended and one of the parties has appealed the result to a high court.
Appeal will be based on legal issues arising from rulings made by the lower court.
Appellate Court publishes its opinion that states new or more appropriate rules to be used in deciding the case and others like it.

26. Beginning of Class Turn to page 9 in your text book
Take 10 minutes to answers the Assestment

27. Case Law Case Law arises from the doctrine of “Stare Decisis”
Means “let the decision stand”
Requires lower courts to decide similar cases the same way.

28. Administrative Law
Federal, State and Local legislatures create administrative agencies
Administrative agencies are government bodies that carry out particular laws.
Examples
Social Security Administration
DMV
County Zoning Commission

29. Administrative Law
Agencies created by legislature but controlled by executive branch
Legislatures grant agencies Legislative powers and limited judicial powers
Create there own laws called Rules and Regulations
With judicial powers – they would hold hearing, make decisions, and apply the law.

30. Turn to Page 13
What’s your Verdict

31. Types of Laws
Civil Law
Private legal rights of an individual are violated
Individuals seek legal remedies for wrongs done to them
Another name is Tort

32. Civil Law Two parties Punishment Plaintiff – one suing Defendant
Liable – Defendant loses
Punishment
Compensation

33. Types of Laws Criminal Law
Is an offense against society rather than individuals
Government investigates an alleged wrongdoing.

34. Criminal Law Two Parties Conviction Prosecutor Defendant Fine
Imprisonment
Execution

35. Procedural Law
Sets forth how rights and responsibilities can be legally exercised and enforced through the legal system.

36. Procedural Law Two types Criminal Procedure Civil Procedure
Defines the process for enforcing the law when someone is charged with a crime
Civil Procedure
When civil law have been violated

37. Substantive Law Defines rights and duties
Concerned with rules of conduct
Defines offenses

38. Business Law Rules that apply to business situations and transactions.
Mostly concerned with Civil Law

39. Uniform Business Laws UCC – Uniform Commercial Code
Governs such areas as sale of goods, certain aspect of banking and leases of goods.
Important because of the large use of interstate commerce and commercial transactions

40. Assessment
Turn to page 15 and answer the question

41. Ethics
Practice of deciding what is right or wrong in a reasoned, impartial manner
Must affect you or others in a significant way
Should be impartial

42. Profit maximization Ethics in Business
Ethics is not considered for one reason
Profit maximization

43. Forms of Ethical Reasoning
Consequences
Rightness and Wrongness is based on the results of the action
First looks for alternative ways to alter the current situation
Then attempts to forecast the consequence that will arise from each alternative
Evaluates this possible consequences to select the alternative that will generate the greatest good

44. Forms of Ethical Reasoning
Moral
Based on ethical rules
Acts are either right or wrong
Good consequences do not justify wrong or bad acts
The standard of judging is based on
Recognized Authority (Religious)
Human Reasoning

45. Civil Disobedience
Open and peaceful violation of a law to protest its alleged injustice or unfairness.
Goal is to make the legal system more just
Participants are willing to be arrested in order to test the validity of the law in court

46. Assessment
Turn to page 19

47. Handouts Complete Lesson 1-1 Reteach Complete Lesson 1-2 Quiz

48. Chapter 1 Assessment Complete Your-Legal Vocabulary on page 20
Complete Review Legal Concepts questions 20, 21 and 24
Complete Write Your Legal Concepts #30
Complete Think Critically About Evidence #34
Complete Analyze Cases #36