1. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 1 Laws and Their Ethical Foundation 1-1 1-1Laws and Legal Systems 1-2 1-2Types of Laws 1-3 1-3Ethical Bases for Laws

2. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 2 1-2Types of Laws GOALS Identify the four sources of law Discuss how conflicts between laws are resolved Compare and contrast criminal and civil law, and substantive and procedural law

3. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 3 WHAT ARE THE SOURCES OF LAW? Constitutions Document setting forth framework of government and its relationship to the people it governs Highest sources of law Statutes Federal constitution created Congress State constitution created state legislatures Both composed of elected representatives acting for their citizens Both legislatures enact laws

4. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. WHAT ARE SOURCES OF LAW? Ordinances Created by towns, city council, county board or commissions Only effective within the boundary of local gov’t. that enacted them Case law Created by judicial branch usually after a trial has ended and appealed to higher court Administrative law Gov’t bodies created to carry out particular laws Soc. Security, DMV, Zoning Commission Chapter 1 SLIDE 4

5. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 5 WHAT HAPPENS WHEN LAWS CONFLICT? Constitutions and validity Nothing valid at lower levels if it conflicts with federal Constitution Statutes and validity Must be constitutional to be valid Did they exceed the scope of the powers of the body that authored it? Administrative regulations and validity Court may invalidate a rule or regulation Can be revised if challenged Case law and validity Can also be rewritten if found invalid or going against the court’s decision

6. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 6 WHAT ARE THE MAIN TYPES OF LAWS? Civil and criminal laws Civil = allows individuals to seek legal remedies for wrongs done against them by another person, police do not take action Defendant must pay compensation Criminal = Citizen’s right to live in peace is violated Guilty verdict means fine imprisonment and sometimes death

7. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. WHAT ARE THE MAIN TYPES OF LAWS? Procedural and substantive laws Procedural = how rights and responsibilities are enforced through the legal system Substantive = rules of conduct for handling cases Business law Uniform business laws = making sure laws between the state are constitutionally valid Laws between states do not have to be alike Chapter 1 SLIDE 7

8. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 8 SUMMARY--TYPES OF LAW Constitutional lawBased on constitutions Statutory lawEnacted by legislative bodies Administrative lawRules and regulations made by administrative agencies Civil lawAddresses wrongs done to individuals Criminal lawAddresses wrongs done to society Procedural lawDeals with methods of enforcing legal rights and duties Substantive lawDefines legal rights and duties Business lawRules that apply to business situations and transactions

9. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 9 1-3Ethical Bases for Laws GOALS Define ethics Compare and contrast consequences-based ethics with rule-based ethics Discuss ways in which ethics are reflected in laws

10. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 10 ETHICS AND THE LAW Ethics— collection of standards of conduct and moral judgment forming the basis for a reasoned, impartial decision as to what is right or wrong. We must obey the law!

11. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 11 CHECKPOINT In the U.S. system of democracy, how are ethics reflected in laws?     

12. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 12 PREVENT LEGAL DIFFICULTIES As a citizen... When moving to a new location, find out how the laws in that county or city may affect you. Before beginning a new business, consult an attorney to learn about city, county, state, and federal laws and how they may affect you. Study business law so you can become an informed citizen who is knowledgeable about legal matters. Continued on the next slide

13. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 SLIDE 13 PREVENT LEGAL DIFFICULTIES Recognize that fulfilling your duties as a citizen is the greatest guarantee of your maintaining your individual rights and liberties. These duties include: The duty to obey the law. The duty to respect the rights of others. The duty to inform yourself on political issues. The duty to vote in elections. The duty to serve on juries if called. The duty to serve and defend your country. The duty to assist agencies of law enforcement.

14. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Class Activity What do you think of when you hard the word leader or leadership? In business, leadership is defined as the ability to influence people and groups to cooperatively achieve organizational goals. 1.Make a list of 5 traits you think are important 2.Get into groups 3.Select from the list the 5 most important skills for a leader to have 4.Read What’s Your Verdict? on page 16. 5.Did Tyrone Bradmore exhibit any leadership qualities when he first learned of the cheating? 6.Which leadership characteristics did he exhibit later when he reported the behavior Chapter 1 SLIDE 14