1. © 2011 South-Western | Cengage Learning GOALS LESSON 1.1 LAW, JUSTICE, AND ETHICS Recognize the difference between law and justice Apply ethics to personal and business decision making

2. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 2 1.1 Law and Justice Laws are rules of conduct that a political authority will enforce. Business law refers to the specific group of laws that regulates the establishment, operation, and termination of commercial enterprises.

3. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 3 1.1 The Growth of Law Stage 1 Stage 2 Stage 3 Stage 4

4. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 4 1.1 Justice Justice is considered to be what is right, fair, or appropriate, based on one person’s perspective, in response to an offending or damaging act by another.

5. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 5 1.1 How U.S. Law Developed English common law system Napoleonic code

6. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 6 1.1 Law and Ethics An ethical system is a way of deciding what is right or wrong in a consistent, reasoned, impartial manner. Decision about a right or wrong action Reasoned decisions Impartial decisions

7. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 7 1.1 Business Ethics Business ethics are the ethical principles used in making business decisions.

8. © 2011 South-Western | Cengage Learning GOALS LESSON 1.2 TYPES OF U.S. LAW Identify the four sources of law Distinguish between criminal and civil laws and between procedural and substantive laws

9. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 9 1.2 Sources of Law Constitutions Statutes Administrative regulations Case law

10. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 10 1.2 Constitutions A constitution is a document that sets forth the framework of a government and its relationship to the people it governs. When constitutions are adopted or amended, or when courts interpret constitutions, constitutional law is made.

11. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 11 1.2 U.S. Bill of Rights The U.S. Bill of rights is based on three English documents: Magna Carta (1215) Petition of Right (1628) Bill of Rights (1689)

12. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 12 1.2 Branches of U.S. Government and Lawmaking Powers Legislative branch makes the laws. Executive branch investigates and prosecutes alleged violators. Judicial branch sits in judgment of alleged violators.

13. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 13 1.2 Statutes Acting for their citizens, legislatures enact laws called statutes. Legislation at the local level usually is called an ordinance.

14. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 14 1.2 Administrative Regulations Administrative agencies are governmental bodies formed to carry out particular laws.

15. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 15 1.2 Case Law When the higher or appellate court publishes its opinion on a case, that opinion may state new rules to be used in deciding the case and others like it. These rules are known as case law. Federal courts establish federal case law. Similarly, each state creates case law through its state courts.

16. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 16 1.2 Classification of Laws Civil laws Criminal laws Procedural laws Substantive laws

17. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 17 1.2 Civil Laws When the private legal rights of an individual are violated, the matter is governed by civil law. The use of the term civil law within the common law system refers to the group of laws that deal with wrongs against individual persons. Civil law applies whenever one person has a right to sue, or to bring legal action against, another person.

18. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 18 1.2 Criminal Laws A crime is an offense against society. When the citizens’ right to live in peace is violated by such activity, the offense is governed by criminal law. Acting in the name of all the people, the government investigates an alleged wrongdoing. If a crime is committed and the person responsible can be found, the government will prosecute. Conviction of a crime can result in a fine, imprisonment, and in some states, execution.

19. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 19 1.2 Procedural Laws Procedural law deals with methods of enforcing legal rights and duties. There are two types of procedural law, civil procedure and criminal procedure. Criminal procedure defines the process for enforcing the law when someone is charged with a crime. Civil procedure is used when a civil law has been violated.

20. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 20 1.2 Substantive Laws In contrast, substantive law defines rights and duties. It is concerned with all rules of conduct, except those involved in enforcement. Substantive laws define offenses, such as murder, theft, vehicular homicide, breach of contract, and negligence.

21. © 2011 South-Western | Cengage Learning GOALS LESSON 1.3 FEDERAL AND STATE LEGAL SYSTEMS Name the three levels of federal courts Identify the various types of state and local courts as well as their jurisdictions

22. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 22 1.3 The Federal Courts U.S. District Courts Federal Courts of Appeal The U.S. Supreme Court

23. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 23 1.3 U.S. District Courts This is the trial court of the federal system. A trial court is basically a court in which a case is fully heard for the first time. The power to determine the facts of the matter and to make the initial determination of the law to be used in deciding a case is called original jurisdiction. The district courts have that power in the federal system.

24. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 24 1.3 Federal Courts of Appeal The federal courts of appeal have appellate jurisdiction over the district courts, certain specialized federal courts, and many federal administrative agencies. Appellate jurisdiction is the power to review cases for errors of law. Such power is exercised when the result of a case in a lower court is appealed by one or more of the parties to the case. Appellate courts do not accept any new evidence or call witnesses.

25. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 25 1.3 The U.S. Supreme Court The U.S. Supreme Court (USSC) has both original and appellate jurisdiction.

26. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 26 1.3 The U.S. Supreme Court— Original Jurisdiction The original jurisdiction of this court is used far less frequently than its appellate jurisdiction. The USSC has original jurisdiction only over cases affecting “Ambassadors, other public Ministers and Consuls, and those in which a State shall be Party.”

27. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 27 1.3 The U.S. Supreme Court— Appellate Jurisdiction The appellate jurisdiction of the USSC is exercised over cases on appeal from two types of courts U.S. courts of appeal The highest courts of the various states The USSC’s appellate jurisdiction over state supreme court cases is limited to those in which a federal law has been invalidated or whose issues center on the U.S. Constitution.

28. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 28 1.3 State and Local Courts State trial courts State courts of appeal State supreme courts Specialized state courts

29. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 29 1.3 State Trial Courts In most states the courts with general original jurisdiction over both criminal and civil matters are known as circuit courts. In other states they are known as Superior courts District courts Courts of common pleas

30. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 30 1.3 State Courts of Appeal About half of the states have state courts of appeal. In states where there is no middle level appellate court, appeals go directly to the highest state court.

31. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 31 1.3 State Supreme Courts Most states call their court of final authority the supreme court. Some states use other names. For example, New York calls its highest court the Court of Appeals.

32. © 2011 South-Western | Cengage Learning BUSINESS LAW, 2eLESSON SLIDE 32 1.3 Specialized State Courts Associate circuit (county) courts Municipal courts Small claims courts Juvenile courts Probate courts Other courts