1. 1 Chapter 1 Introduction to Law © 2012 South-Western, a part of Cengage Learning

2. TEXT Carper/McKinsey/Meiners/Ringleb/Edwards, Introduction to Law for Business Not Kubasek, The Legal Environment of Business © 2012 South-Western, a part of Cengage Learning 2

3. Quote “No law perfectly suits the convenience of every member of the community: the only consideration is, whether upon the whole it be profitable to the greater part.”  Livy, History of Rome, c. 10 B.C. 3 © 2012 South-Western, a part of Cengage Learning

4. U.S. Law is based on the English Common Law English common law derived its legitimacy from experience and custom Influenced by Norman invasion of 1066 Kings Courts Chancellor courts (equity) Use of case law as precedent Second most common legal system in the world 4 © 2012 South-Western, a part of Cengage Learning

5. WHAT IS “LAW”? Text: “a body of rules and conduct prescribed by controlling authority and having binding legal effect” Prescribed by whom?  Separation of Powers Who determines whether a law has “binding legal effect”?  Judicial Review © 2012 South-Western, a part of Cengage Learning 5

6. Modern U.S. Common Law Federalism – Union of states under federal government The Constitution is the foundation of all U.S. laws Doctrine of stare decisis or precedent  Mandate that Inferior courts follow decisions of superior courts  Provides stability and predictability to legal system Alternate references for term common law  Case law  Court law  Unwritten law 6 © 2012 South-Western, a part of Cengage Learning

7. Stare Decisis Latin term meaning “To stand by decided cases.” Treating these cases as “Precedent.” Application of doctrine in typical situations  Variables to consider when applying rule Jurisdiction issues (Which court, Which State?) Identity or similarity of facts Currency  Change in cultural values  Change in scientific knowledge 7 © 2012 South-Western, a part of Cengage Learning

8. THE LAW IS DYNAMIC Examples:  Affirmative Action: what impact will Fisher have?  DOMA: enacted by controlling authority, but will it have binding legal effect?  Changes caused by societal, cultural and economic changes: The role of women Plessy v. Ferguson Discrimination against the LGBT community Intellectual property law International law Environmental law © 2012 South-Western, a part of Cengage Learning 8

9. Lawmaking by other than courts Legislators  Federal & State – Doctrine of Supremacy  Statutes  Codes  Ordinances  Treaties Executive Branch  Veto  Executive orders  Treaties  Administrative agencies People  Initiatives 9 © 2012 South-Western, a part of Cengage Learning

10. Classifications & Categories of Law Federal State Civil Criminal Private Public International Domestic Procedural Substantive 10 © 2012 South-Western, a part of Cengage Learning

11. Federal v. State Law Federal law  National in origin  Consistent with constitution  Supreme over state law  Exclusive in International affairs  Multiple sources of federal law State Law  Ordinary affairs of citizens including most contract, tort, and criminal law  Multiple sources of state law 11 © 2012 South-Western, a part of Cengage Learning

12. Civil v. Criminal Law Civil law: Body of law directly concerning the rights and duties between parties Criminal law: Body of law dealing with crimes and their punishment 12 © 2012 South-Western, a part of Cengage Learning

13. Contrast Between Civil And Criminal Law Civil Criminal NatureRights and duties of individuals to each other Wrongs against society as a whole Person Initiating ActionPlaintiff or person injuredEither federal, state, or local prosecutor Burden of Proof in TrialPreponderance of the evidenceBeyond a reasonable doubt Result soughtMoney damages or equitable remedy Death, fine or imprisonment 13 © 2012 South-Western, a part of Cengage Learning

14. Private v. Public Law Public law: Body of law directly concerned with public rights and obligations Private law: Body of law regulating rights and duties existing between private persons. The rights and duties are created by the affected parties 14 © 2012 South-Western, a part of Cengage Learning

15. International v. Domestic Law International law: Governing relations between sovereign nations Domestic law: Law of a particular sovereign nation Challenges include international trade, travel, and violence given the limited ability to enforce international law 15 © 2012 South-Western, a part of Cengage Learning

16. Procedural Law v. Substantive Procedural law: General principles and detailed rules that define the methods of administering the substantive law Substantive law: General principles and detailed rules defining legal rights and duties 16 © 2012 South-Western, a part of Cengage Learning

17. THE IMPACT OF STARE DECISIS If the facts of a new case are essentially identical to a case previously decided by an appellate court, the inferior court must follow the old decision If the new case is somewhat different, but the underlying rationale and policy of the old case makes sense, extend the previous ruling to the new facts. © 2012 South-Western, a part of Cengage Learning 17

18. IMPACT OF STARE DECISIS, CONT’D If the new case is not the same and the underlying rationale of the old case doesn’t make sense in this new case, distinguish the new case from the old one and limit the rule from the old case If the new case is essentially identical to the old case, but the underlying rule no longer makes sense, overrule the previous precedent. © 2012 South-Western, a part of Cengage Learning 18

19. EXAMPLES OF OVERRULED CASES Plessy v. Ferguson Brown v. Board of Education Citizens United Potentially Fisher v. University of Texas © 2012 South-Western, a part of Cengage Learning 19

20. Relationship Between Law and Ethics Legal rules and rules of ethics serve different goals  Is an action legal?  Is an action morally or ethically correct? Law is imperfect –exclusive compliance with the law may fall short of correct behavior. It is possible to comply with the letter of the law and still not act in a moral manner What Are Ethics?  Ethics is study of the general nature of morals and moral choices to be made by the individual in relationships with others  Rules or standards governing the conduct of the member of a profession, e.g., the legal profession  Standards of fair and honest conduct 20 © 2012 South-Western, a part of Cengage Learning

21. Ethics Terms Morals: Relating to whether conduct is right or wrong, generally similar to ethics although used in a more personal sense Norms: Standards of behavior Normative Judgments: Value judgments as to right and wrong Non-normative: Statements of fact which are value neutral 21 © 2012 South-Western, a part of Cengage Learning

22. How do we determine what is a “right” decision? Negotiations Westside Federal layoffs © 2012 South-Western, a part of Cengage Learning 22

23. Is Legal Compliance Sufficient? Kitty Genovese Case © 2012 South-Western, a part of Cengage Learning 23

24. Ethical standards and decision making Duty-based ethics: Actions are morally correct if they comply with existing obligations owed another or ourselves  Often religious based  Kantian ethics Utilitarianism: Determining right conduct is based on consequences; that the purpose of the behavior should be the greatest happiness of the greatest number people 24 © 2012 South-Western, a part of Cengage Learning

25. Eric J. v. Betty M. Who is the appellant? Respondent? Who was the plaintiff? Defendant? What precedent did the appellant cite? How did the court distinguish the Soldano case? How do you feel about the decision? Did the court promote ethical conduct? Why or why not? © 2012 South-Western, a part of Cengage Learning 25

26. Moral Reasoning  A rational thought process directed at testing whether action is right or wrong. The conclusion is a determination of moral responsibility or culpability  Deductive logic A method of logical reasoning from two or more propositions to a conclusion. Inferences are drawn from a general premise to a specific premise. The conclusion is valid if the proposition on which the conclusion is based is true 26 © 2012 South-Western, a part of Cengage Learning

27. Using Court Cases Federal v. State cases Trial v. Appellate court cases Citation – manner in which court cases are identified, 76 Cal. App. 4th 715, 90 Cal.Rptr.2d. 4 (California, 1999)]  76 - volume  Cal. App. – name of the reporter  4th – edition of reporter  715 – page where case can be found  90 Cal.Rptr.2d. 4 – parallel citation to another reporter  California – state in which decision was rendered  1999 – year the case was decided  Additional example: 77 W. 2d 345 (1969) 27 © 2012 South-Western, a part of Cengage Learning

28. Using Court Cases -Terminology Unanimous opinion: A judicial decision with complete agreement by all judges Majority opinion: A written opinion by a judge outlining the views of the majority of the judges of the court deciding the case Concurring opinion: A written opinion wherein a judge agrees (concurs) with the result reached by another judge, but for different reasons from those stated by the other judge Dissenting opinion: A written opinion by a judge or judges who vote contrary to the majority opinion and holding of the court 28 © 2012 South-Western, a part of Cengage Learning

29. Terminology, Cont’d Appellant/Respondent Petitioner/Respondent Plaintiff/Defendant Judges/Justices © 2012 South-Western, a part of Cengage Learning 29