1. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning Chapter 1 The Nature and Sources of Law Twomey Jennings Anderson’s Business Law and the Legal Environment, Comprehensive 20e Anderson’s Business Law and the Legal Environment, Standard 20e Business Law: Principles for Today’s Commercial Environment 2e

2. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 2 Nature of Law and Legal Rights Legal Rights: legal capacity to require another person to do or not do an act. –Individual Rights: the right of privacy, which protects us from unreasonable searches and intrusion into or disclosure of our private affairs. –Privacy and Technology is growing concern.

3. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 3 Nature of Law and Legal Rights Legal Duties: legal obligation imposed upon a person to do or not do an act. Rights and Duties co-exist.

4. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 4 Sources of Law Law consists of the pattern of rules established by society to govern conduct and relationships. These rules can be expressed as: –Constitutional provisions, –Statutes, –Administrative regulations, and –Case decisions.

5. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 5 Common Law – made up of tradition and court precedent; may be repealed or strengthened by case law and statutory law. Federal (U.S) Constitution State Constitution Federal (U.S. Congress) State Legislatures Local Gov’t (City, County) Federal Administrative Agencies State Administrative Agencies Sources of Law Case Law– laws made by decisions of a court; also courts may enforce common law rules The National Conference of Commissioners on Uniform State Law has drafted statutes on various subjects to try to achieve uniformity among state statutes. Treaties and Executive Orders Constitutional Law Administrative Law Statutory Law

6. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 6 Classifications of Law Substantive law creates, defines and regulates rights and liabilities. Procedural law specifies how rights and liabilities are enforced. Civil law is of Roman origin; common law is of English origin.

7. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 7 Classifications of Law Law may be described in terms of the subject to which it relates, such as estate law or contract law. A special category of law is the principle of equity, used in special cases for which the standard law does not provide adequate remedy.