1. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Slide 1 Our Laws 1-1 1-1Our Laws and Legal System 1-2 1-2 Types of Laws 1-3 1-3 Ethical Bases for Laws CHAPTER 1 Lessons Slide 1 Lesson 1-1

2. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Slide 2Lesson 1-1

3. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Slide 3 Types of Laws Explain the stages in the evolution of law Describe the differences between common law and positive law Describe the difference between law courts and equity courts Lesson 1-1 GOALS Slide 3 Lesson 1-1

4. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-1Slide 4

5. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-1Slide 5 WHAT IS LAW? Laws are enforceable rules of conduct in a society They reflect the culture and circumstances that create them The need for law has not changed significantly over our recorded history Considering this information what is your answer to What’s Your Verdict – “What is Law”

6. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-1Slide 6 The professors in What’s Your Verdict? were correct. The need for law has not changed much over recorded history. People still make the same mistakes and still need the same protections from the conduct of others.

7. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-1Slide 7 Stages in the Growth of Law Most societies go through four distinct stages in forming their legal systems: 1.Individuals take revenge for wrongs done to them 2.Awards of money or goods are substituted for revenge 3.Court systems are formed 4.A central authority figure intervenes to prevent and punish wrongs

8. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-1Slide 8 Common Law vs. Positive Law In any society, laws should be both predictable and flexible. 1.Law based on the current standards or customs of the people is called common law. 2.Law that are set down by a sovereign or other central authority to prevent disputes and wrongs from occurring is called positive law.

9. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-1Slide 9

10. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-1Slide 10 OUR LEGAL SYSTEM’S ORIGIN The world’s two great systems of law are: 1.English Common Law 2.Roman Civil Law Louisiana is the only state in the United States that is based on a civil law system All other 49 states are based on the English common law

11. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-1Slide 11 The laws in these codes are typically only changed by the central government, not by the judges who administer them. Only one state the United States—Louisiana—has a civil law system. The legal system used in the other 49 states is based on the English common law. Therefore, in What’s Your Verdict?, LaBonne was correct.

12. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-1Slide 12 N APOLEONIC C ODE The area of the United States that is now the state of Louisiana was claimed for France by the explorer Lasalle in 1 682. French settlers brought many French influences to the state of Louisiana—customs, food, language, and law. Louisiana’s legal system was developed using the French Code Napoléon (or Napoleonic Code) as a foundation. However, over the years Louisiana has modified its laws to correspond with those of the other 49 states. The Napoleonic Code was derived from Germanic customs and Roman law as modified by the French Republic in the late 1700s. The Napoleonic Code also was the model for the civil law codes of Italy, the Netherlands, Spain, and the Canadian Province of Quebec.

13. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-1Slide 13 English Common Law Advantages The judicial process described in the example the “Kings Bench” was repeated over and over again A web of custom-based common law developed and this process is called the English common law system

14. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-1Slide 14 English Common Law System Differs from a traditional system of common law in its uniformity Because of its uniformity it is able to adapt to changes in society The system of law in the United States is based on English common law

15. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-1Slide 15 EQUITY: An Alternative The English common law courts carefully followed precedent, which means the courts used prior cases as a guide for deciding similar new cases

16. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-1Slide 16 English Common Law Disadvantages Following precedent resulted in a rigid adherence to proper form Courts had to wait until the harm actually occurred before it could take action

17. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-1Slide 17 EQUITY COURTS The king sensed a need for access to equitable remedies for all citizens A system of equity courts was created and was placed under the chancellor’s control The chancellor might issue a decree so something could be done or and injunction to prohibit something from being done

18. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-1Slide 18 EQUITY COURTS TODAY Today in the United States, law courts and equity courts are generally merged Consequently, most American courts can award damages or issue orders, or both

19. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Slide 19 Lesson 1-1

20. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Slide 20 Lesson 1-1

21. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Slide 21 THINK ABOUT LEGAL CONCEPTS 1. Substitution of damages for revenge is the first stage in the evolution of law. The first stage is that individuals take revenge for wrongs done to them; see page 5 True or False? Slide 21Lesson 1-1

22. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING The world’s two great systems of law are the English common law and the Roman civil law Slide 22 THINK ABOUT LEGAL CONCEPTS 2.The two systems of law in use today are the English common law and the…….? a. American Constitution b. French legal code c. Roman civil law d. None of the above Slide 22Lesson 1-1

23. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Slide 23 THINK ABOUT LEGAL CONCEPTS 3. An organized group of laws is referred to as a code. Slide 23Lesson 1-1 False? or True

24. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Slide 24 THINK ABOUT LEGAL CONCEPTS 4.Louisiana is the only one of our 50 states whose legal system was not originally based on the English common law system? Louisiana’s legal system was developed using the French Code Napoleon or Napoleonic Code as a foundation; see page 6 False? or True Slide 24Lesson 1-1

25. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Slide 25 THINK ABOUT LEGAL CONCEPTS 5. Most American law courts can use either damages or an injunction or both as remedies in civil cases? In the United States, law courts and equity courts generally are merged so most American courts can award damages or issue orders or both; see page 8 False? or True Slide 25Lesson 1-1

26. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING THINK CRITICALLY ABOUT EVIDENCE Slide 26Lesson 1-1

27. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 27 Types of Laws Explain how constitutional, statutory, case, and administrative laws are created Explain how to resolve conflicts between constitutional, statutory, case, and administrative laws Describe the differences between criminal and civil, substantive and procedural law, and business and other forms of law Lesson 1-2 GOALS

28. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 28

29. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 29 SOURCES OF OUR LAWS Laws in this country are created at all three levels of government: 1.Federal 2.State 3.Local

30. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 30 LAWS AT EACH LEVEL The laws at each level consist mainly of: 1.Constitutions 2.Statutes 3.Administrative Regulations 4.Case Law

31. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 31 CONSTITUTIONS A constitution is a document that sets forth the framework of a government and its relationship to the people it governs Constitutional law is made when constitutions are adopted or amended, or when courts interpret constitutions

32. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 32 YOUR GOVERNANCE You are governed by both the Constitution of the United States and the constitution of your state.

33. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 33 FEDERAL AND STATE The Supreme Court of the United States is the final interpreter of the federal government Each state supreme court is the final authority on the meaning of its state constitution

34. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 34 ALLOCATION OF POWERS Federal and state constitutions are concerned primarily with defining and allocation certain powers in our society

35. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 35 PEOPLE AND GOVERNMENT The federal Constitution allocates powers between people and their government with its first ten amendments which are the…… Bill of Rights

36. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 36 ALLOCATION OF POWERS The federal Constitution allocates powers: 1.Between the people and their governments 2.Between state governments and the federal government 3.Among the branches of the government

37. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 37 The Bill of Rights reserves the rights of citizens and protects them from actions of their governments. This is the section of the federal Constitution referred to in What’s Your Verdict?

38. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 38 FEDERAL AND STATE The constitution gives the federal government the power to regulate both foreign and interstate commerce – between two states The power to regulate intrastate commerce – within one state, is left with that state

39. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 39

40. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 40

41. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 41 GOVERNMENT BRANCHES State and federal constitutions allocates powers among the three government branches: executive, legislative, and judicial This allocation of powers creates a system of checks and balances among the branches to ensure that no one branch becomes too powerful

42. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 42 STATUTES The federal Constitution created the Congress of the United States State constitutions created the state legislatures These federal and state legislatures are composed of representative of the citizens and they enact laws called statutes What is your answer to What’s Your Verdict?

43. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2 Slide 43 ORDINANCES All states delegate some legislative authority to local governments – towns, cities, and counties Legislation created at the local level is usually called an ordinance These laws are effective only within the boundary of the local governments that enacted them Slide 43

44. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2 Slide 44 CASE LAW The judicial branch of governments creates case law. Case law is usually made after a trial has ended and one of the parties has appealed the result to a higher court The appellate court may published an opinion on the case and state new rules to be used in deciding similar cases – this creates case law Slide 44

45. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2 Slide 45 STARE DECISIS The effectiveness of case law arises out of the doctrine of stare decisis which is Latin for “to adhere to decided cases Slide 45

46. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2 Slide 46 STARE DECISIS The doctrine of stare decisis requires that lower courts follow established case law in deciding similar cases It generally does not bind supreme courts; however case law doctrines are carefully established and seldom revoked Slide 46

47. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 47

48. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2 Slide 48 ADMINISTRATIVE REGULATIONS Federal, state, and local legislatures all create administrative agencies, which are government bodies formed to carry out particular laws. Examples include …… federal Social Security Administration the states division of motor vehicles county zoning commissions Slide 48

49. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2 Slide 49 LEGISLATIVE POWERS Administrative agencies are given some legislative powers and limited judicial powers Legislative powers gives agencies authority to create administrative laws called rules and regulations Judicial powers gives agencies authority to hold hearings, make determinations of fact, and apply the law to particular cases Slide 49

50. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 50

51. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2 Slide 51 CONSTITUTIONS AND VALIDITY Sometimes laws created by different levels of government conflict Constitutions are the highest sources of law, and the federal Constitution is “the supreme law of the land” This means that any federal, state, or local law is not valid if it conflicts with the federal Constitution Slide 51

52. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 52 In answer to What’s Your Verdict? the people’s response to the Supreme Court decision was the Sixteenth Amendment to the U.S. Constitution. Adopted in 1913, it gave Congress the power to lay and collect an income tax. This in effect nullified the U.S. Supreme Court decision.

53. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2 Slide 53 STATE CONSTITUTIONS Similarly, within each state the state constitution is supreme to all other state laws When a law is invalid because it conflicts with a constitution, it is said to be unconstitutional Slide 53

54. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2 Slide 54 CONSTITUTIONAL Statutes (state) or ordinances (local) must be constitutional to be valid and ordinances must not exceed the powers delegated to local government by states Slide 54

55. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2 Slide 55 DETERMINATION Courts determine the constitutionality of statutes and ordinances Courts also determine whether particular ordinances exceed the scope of powers delegated Slide 55

56. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2 Slide 56 ADMINISTRATIVE REGULATIONS & VALIDITY The courts may invalidate an administrative agency rule or regulation if it is outside the scope of powers delegated to the agency by the legislature that created it Slide 56

57. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2 Slide 57 CASE LAW AND VALIDITY Courts are not the final authority on the effect of statutes A legislative body has the power to nullify a court’s interpretation of a statute or ordinance by abolishing or rewriting it Slide 57

58. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2 Slide 58 CASE LAW AND VALIDITY Administration agencies can revise their regulations when challenged; courts are not the ultimate authority People through votes for their representatives, have the power to amend constitutions if they disagree with the courts’ interpretations Slide 58

59. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Do you know what people can do to change a decision made by the Supreme Court? Through votes that you cast as citizens for your representatives, you can help amend constitutions See Appendix A – pages 640-645 for examples of amendments made. REVIEW Slide 59Lesson 1-2

60. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2 Slide 60

61. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2 Slide 61 CLASSIFICATION OF LAWS 1.Civil Laws 2.Procedural Laws 3.Substantive Laws 4.Business Law Slide 61

62. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 62 CRIMINAL V. CIVIL LAWS When private legal rights of individuals are violated, the matter is governed by civil law Civil law within the common law system refers to the group of laws that redress wrongs against individual persons Civil law applies whenever one person has a right to sue another person

63. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2 Slide 63 CRIME A crime is an offense against society. When a citizen’s right to live in peace is violated by such activity, the offense is governed by criminal law Civil law applies whenever one person has a right to sue another person Slide 63

64. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING INVESTIGATING CRIMES Acting in the name of the people, the government investigates alleged wrong-doings If a crime is committed and the person responsible can be found, the government will prosecute. A violation can be both a crime and a civil offense; thus civil law also applies Lesson 1-2 Slide 64

65. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 65 In What’s Your Verdict? Joe committed both a crime and a civil offense. Denying ventilation support to the patient was a criminal act for which Joe could be arrested, convicted in a criminal trial, and fined and/or imprisoned. In addition, Joe committed a civil offense by intentionally harming the patient. As a consequence, Joe (and perhaps his employer) would likely be held liable in a civil lawsuit and required to pay damages to the patient.

66. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 66

67. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING PROCEDURAL V. SUBSTANTIVE LAW Procedural law deals with methods of enforcing legal rights and duties Laws that specify how and when police can make arrests and what methods can be used in a trial are procedural law The doctrine of stare decisis and rules for determining the supremacy of conflicting laws are procedural law Lesson 1-2 Slide 67

68. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING SUBSTANTIVE LAW Substantive law defines rights and duties It is concerned with all rules of conduct except those involved in enforcement Substantive law define offenses, such as murder, theft, vehicular homicide, breach of contract, and negligence Lesson 1-2 Slide 68

69. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING PROCEDURAL LAW There are two types of procedural law: 1.Criminal Procedure: defines the process for enforcing the law when someone is charged with a crime 2.Civil Procedure: is used when a civil law has been violated; civil law is concerned only with private offenses Lesson 1-2 Slide 69

70. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING BUSINESS LAW Business law covers rules that apply to business situations and transactions Most business transactions involve a merchant and a consumer Business law is largely concerned with civil law, especially contracts Lesson 1-2 Slide 70

71. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING CATEGORIES OF BUSINESS LAW Torts are private wrongs (civil offenses) against people or organizations and are a category of business law Torts may occur when manufacturers make defective products that injure users Business activities are also governed by criminal law at times Lesson 1-2 Slide 71

72. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 72

73. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING UNIFORM COMMERCIAL CODE The Uniform Commercial Code (UCC) is a widely adopted uniform business law It governs such areas as sales of goods, certain aspects of banking, and leases of goods Lesson 1-2 Slide 73

74. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Lesson 1-2Slide 74

75. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING THINK ABOUT LEGAL CONCEPTS 1.The first ten amendments to the U.S. Constitution are known as the……? The Bill of Rights Lesson 1-2 Slide 75

76. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING THINK ABOUT LEGAL CONCEPTS 2. A crime is considered an offense against (a) its victims (b) those who commit it (c) the state (d) none of the above. Lesson 1-2 Slide 76 (c) The state

77. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING THINK ABOUT LEGAL CONCEPTS 3.Legislative enactments at the local level are called……? Ordinances Lesson 1-2 Slide 77

78. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING THINK ABOUT LEGAL CONCEPTS True 4.Stare decisis is the doctrine that requires lower courts to adhere to existing case law in their decisions? False? or This term is Latin for “to adhere to decided cases” see page 10 Lesson 1-2 Slide 78

79. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING THINK ABOUT LEGAL CONCEPTS 5.Torts are private wrongs committed against individuals or organizations? See page 10 True False? or Lesson 1-2 Slide 79

80. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING THINK ABOUT LEGAL CONCEPTS 6.Business activities are at times governed by the criminal law? True False? or Business law is largely concerned with civil law, however, business activities are also governed by criminal law. For example, criminal law would punish a firm that conspires with competitors to fix prices or an employee who steals company tools Lesson 1-2 Slide 80

81. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING THINK ABOUT LEGAL CONCEPTS 7.Businesses cannot commit torts? False?Trueor Torts are private wrongs (civil offenses) against people or organizations. Torts are distinct from breaches of contract. A business would commit a tort of if it manufactures a defective products that injures the users. Lesson 1-2 Slide 81

82. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING THINK ABOUT LEGAL CONCEPTS 8. The statutory definition of murder is a (a) substantive law (b) procedural law (c) prohibitive law (d) none of the above Lesson 1-2 Slide 82 (a) substantive law

83. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING THINK CRITICALLY ABOUT EVIDENCE Lesson 1-2 Slide 83