1. Law for Business and Personal Use © Thomson South-Western CHAPTER 1 Laws and Their Ethical Foundation 1-1 Laws and Legal Systems 1-2 Types of Laws 1-3 Ethical Bases for Laws

2. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 2 1-1 1-1 Laws and Legal Systems GOALS Explain the stages in the growth of law Describe the differences between common law and positive law Identify the origin of the U.S. legal system

3. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 3 WHAT IS LAW? Stages in the growth of law 1.Individuals take revenge for wrongs done to them (example: gang wars) 1.Often results in innocent getting hurt 2.A powerful leader (sovereign) substitutes an award of money or good for revenge 1.Money given to not take revenge 3.The Leader (sovereign) gives power to courts 4.Leader acts to prevent and punish wrong.

4. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 4 How does common law differ from positive law? Common law based on current standards or customs among the people, where positive law is dictated from above by a central authority.

5. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 5 WHAT IS LAW? Common law versus positive law Common based on customs Positive dictated from above

6. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 6 On which early legal system is the U.S. legal system based? English Common Law

7. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 7 WHAT IS THE ORIGIN OF THE U.S. LEGAL SYSTEM? English common law – used in all states except Louisiana Disputes settled by local barons therefore based on the local customs and varied from place to place. King’s Bench – appointed judges by the central government to hear important cases (jurisdiction over) to make rulings from central gov. not local barons Jury – unique to English common law system Local citizens chosen to interpret that regions customs for the court. Advantages of English common law Created a uniform custom based common law across the country. Still has the ability to adapt to changes in society

8. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 8 WHAT IS THE ORIGIN OF THE U.S. LEGAL SYSTEM? Equity: An alternative to common law The Common law courts carefully followed precedent. Precedent – courts as a guide for deciding similar new cases. Helps provide stability in the law. Common law courts had to wait until the harm actually occurred before they could take action. Noblemen could petition the king for equity. The equity courts (no jury) could issue an injunction. (Stop order) before harm would occur.

9. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 9 WHAT IS THE ORIGIN OF THE U.S. LEGAL SYSTEM? In today’s court system courts can award damages or issue orders or both. Four States still administer law and equity in separate courts.

10. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 10 FOCUS Make a list of rules the school enforces. Make a second list of rules you must live by in your families. How do these rules affect your life? Which rules would you like to change? Why? How would the changes affect you, your family, or school?

11. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 11 1-2 1-2 Types of Laws GOALS Identify the four sources of law Discuss how to resolve conflicts between different sources of laws Compare and contrast criminal and civil law, and substantive and procedural law

12. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 12 FOCUS What is law?

13. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 13 WHAT ARE THE SOURCES OF LAW? Constitutions Statutes Case law Administrative regulations

14. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 14 Constitutions A document that sets forth the framework of a government and its relationship to the people it governs When courts interpret constitutions, constitutional law is made The Supreme Court is the final interpreter of the federal Constitution Highest source of law Federal Constitution is “the supreme law of the land”

15. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 15 Constitutions Allocation of Power Between People and their Government Fed. Constitution is the main instrument for allocating powers between people and their governments Bill of Rights – 1 st 10 amendments

16. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 16 Constitutions Allocation of Power Between Federal and State Government Fed. Constitution allocates power between federal and state government Interstate commerce taken care of by federal government Intrastate commerce taken care of by the state government

17. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 17 Constitutions Allocation of Power Between Branches of Government Powers between Executive Legislative Judicial Checks and balances so no branch becomes to powerful

18. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 18 Statutes Laws enacted by Legislative Branch (State and Federal) Ordinances – local government legislation

19. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 19 Case Law Created by the Judicial Branch Can be both at Federal and State Level After Trial is ended and appeal is made the appellate court publishes it’s opinion = case law Case Law states new rules to be used in deciding similar/same cases Stare Decisis – “Let the decision stand” Not always binding to the supreme court

20. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 20 Administrative Regulations Governmental bodies formed to carry out particular laws DMV FDA USDA Controlled by the Executive Branch President/Governor/Mayor Administrative laws usually called rules and regulations.

21. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 21 What are the four sources of law? Constitutions, Statutes, Case law, Administrative regulations

22. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 22 WHAT HAPPENS WHEN LAWS CONFLICT? (Typically) Federal State Local Constitutional Statutory Administrative Higher Court Lower Court

23. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 23 Constitutions and Validity Any federal, state, or local statute, case law or admin. decision is not valid if it conflicts with the constitution (unconstitutional) The people have the power to amend the constitution of they disagree with the Supreme Court’s interpretation

24. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 24 WHAT HAPPENS WHEN LAWS CONFLICT? Statutes and validity Must be constitutional to be valid Court can examine to see if the body that authored it exceeded the scope of their powers Administrative regulations and validity Must be constitutional to be valid Court can examine to see if the body that authored it exceeded the scope of their powers

25. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 25 WHAT HAPPENS WHEN LAWS CONFLICT? Case law and validity – When courts challenge or hold statue invalid the legislative body or administrative agencies can revise their regulations

26. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 26 Which source of law in the United States is the highest authority? The US Constitution

27. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 27 WHAT ARE THE MAIN TYPES OF LAWS? Civil and criminal laws Procedural and substantive laws Business law Uniform business laws

28. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 28 Civil and Criminal Laws Civil Law – when the private legal rights of an individual are violated. Police do not take action in a civil conflict If the defendant loses a civil care the defendant is liable (must pay money to the plaintiff) Torts – Civil offenses against people or organizations Crime – an offense against society. Gov. investigates alleged wrongs Conviction of a crime results in fine, imprisonment or possible execution An offense can be both a crime and civil offense.

29. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 29 Procedural and Substantive Laws Procedural Law – deals with methods of enforcing legal rights and duties. when police can arrest stare decisis is a procedural law Two types of procedural laws are criminal procedure (process for enforcing the law when someone is charged with a crime) civil procedure (process of enforcing the law when someone has violated a civil law). Substantive Laws – defines rights and duties. Defines offenses such as murder, theft etc.

30. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 30 Business Law Covers rules that apply to business situations. Mainly concerned with civil law Laws pertaining to commercial torts (company injures someone) Uniform Commercial Code (UCC) – a set of laws that is formulated hoping states will adopt them. fund Transfers, Letters of Credit, Investment Securities

31. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 31 Compare and contrast criminal and civil law and substantive and procedural law.

32. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 32 TYPES OF LAW Constitutional lawBased on constitutions StatutesEnacted by legislative bodies Administrative lawRulings 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 transactions

33. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 33 1-3 1-3 Ethical Bases for Laws GOALS Define ethics Compare and contrast ethics based on consequences with ethics based on systems of rules Discuss ways in which ethics are reflected in laws

34. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 34 FOCUS What does ethics mean? Ethics – is a practice of deciding what is right or wrong in a reasoned, impartial manner. To make ethical decisions, we usually must base our decisions on reasons, not emotion. Impartiality – that idea that the same ethical standards are applied to everyone.

35. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 35 ETHICS AND THE LAW Basic forms of ethical reasoning – both forms usually reach the same conclusion Consequences-based ethical reasoning Rule-based ethical reasoning Ethics reflected in laws – most laws are based on what is best for the majority and therefore more like consequences-based ethical reasoning.

36. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 36 Consequences-based ethical reasoning An action that produces good consequences is good and an action that produces bad consequences is bad. Murdering Hitler

37. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 37 Rule-based ethical reasoning Actions are judged as either right or wrong based on either a recognized authority or human reasoning. Lying = wrong telling truth=right A test called universalization- picture everyone doing the action and then would this be irrational, illogical or demeaning? Murdering Hitler

38. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 38 Civil Disobedience Open, peaceful, violation of a law to protest its alleged or supposed injustice. Goal is to make the legal system more just. ( Cannot be for self-interest)

39. Law for Business and Personal Use © Thomson South-Western Chapter 1 Slide 39 In the U.S. system of democracy, how are ethics reflected in laws?