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 1-1Laws 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 © 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 IS LAW? Stages in the growth of law 1.Individuals are free to take revenge for wrongs done to them. 2.A leader convinces revenge-minded individuals to take money or goods instead. 3.Leader gives this power to a system of courts. 4.Leader acts to prevent and punish wrongs that provoke revenge.

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. Chapter 1 SLIDE 4 WHAT IS LAW? Common law versus positive law Common Law: Law based on the current standards or customs of the people. Positive Law: Law based on the dictates of central authority.

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      CHECKPOINT How does common law differ from positive law? Answer: Common Law is based on current standards or customs among the people, whereas positive law is dictated from above by a central authority

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 IS THE ORIGIN OF THE U.S. LEGAL SYSTEM? English common law King’s Bench Jury An example Advantages of English common law Uniform while being able to adapt to changes in society

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. Chapter 1 SLIDE 7 WHAT IS THE ORIGIN OF THE U.S. LEGAL SYSTEM? Equity: An alternative to common law Equity: Basic fairness Equity courts: citizens had no right to issue injunctions or compel something to happen. These court were given power by the king to allow access to equitable remedies for citizens.

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 CHECKPOINT On which early legal system is the U.S. legal system based? English Common Law     

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 1-2Types 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

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 WHAT ARE THE SOURCES OF LAW? Constitutions: Document sets framework of the government and its relationship to the people. Constitutional law: when courts interpret the constitution. Constitutions allocate powers: 1.Between people and their government 2.Between state governments and federal governments 3.Among branches of government

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 WHAT ARE THE SOURCES OF LAW? Statutes: Law enacted by state of federal legislatures Congress was formed from the constitution Congress is composed of elected officials that enact laws called statutes. Ordinances: Legislation enacted by a town, city, or county board or commission States give towns or cities the power to legislate matters. When the town or city creates a new piece of legislation it is referred to as an ordinance Only effective within the boundary of the local government

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 WHAT ARE THE SOURCES OF LAW? Case law: Made when an appellate court endorses a rule to be used in deciding court cases Occurs when a case is appealed to a higher court The higher courts ruling becomes the new set of rules by which all other cases are decided. Stare Decisis: Doctrine that requires lower courts to follow existing case in deciding similar cases. Administrative law Administrative agencies: governmental body formed to carry out particular laws Agencies are given power to apply law in specific cases.

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 CHECKPOINT What are the five sources of law? Constitutions Statutes Ordinances Case Law Administrative Law     

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. Chapter 1 SLIDE 14 WHAT HAPPENS WHEN LAWS CONFLICT? Constitutions and validity Laws can be rules unconstitutional by courts Supreme Court has the final say Statutes and validity Statutes can be looked at to see if the law exceeds the scope of powers of the authoritative body.

15. 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 15 CHECKPOINT Which source of law in the United States is the highest authority? U.S. Constitution     

16. 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 16 WHAT ARE THE MAIN TYPES OF LAWS? Civil and criminal laws Civil Law: group of laws that allows individuals to seek legal remedies for wrongs done to them. Example: You forget to pay rent, the landlord has the right to sue you. Criminal Law: group of laws that defines and sets punishments for offenses against society. Example: Joe, a Doctor, intentionally harms his patients. Joe can be convicted in a trial for wrongdoing. You can be convicted of both a civil and criminal law

17. 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 17 WHAT ARE THE MAIN TYPES OF LAWS? Procedural and substantive laws Procedural Law: group of laws that define the methods for enforcing legal rights and duties Substantive Law: Defines rights and duties Example: defines offenses such as murder Business law Laws that govern business situations and transactions Usually concerned with contracts, property, and business related areas. Uniform Commercial Code (UCC): Widely adopted uniform business law.

18. 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 18 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

19. 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 19 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

20. 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 20 ETHICS AND THE LAW Ethics: A collection of standards of conduct and moral judgment forming the basis of a reasoned, impartial decision of what is right and wrong. Ethical Decisions are based on reason not emotion

21. 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 21 ETHICS AND THE LAW Basic forms of ethical reasoning Consequences-based ethical reasoning: Moral worth of a proposed action is based on the consequences and alternatives to it. Rule-based ethical reasoning: Acts are judged based on the fundamental ethical rules set. Wrong actions are never condoned even if they bring about a good result.

22. 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 22 ETHICS AND THE LAW Ethics reflected in laws Representatives vote on laws that they feel will be acceptable to the majority of the people they represent. Civil Disobedience: open, peaceful, violation of a law to protest its alleged, or supposed, injustice. Example: Dr. Martin Luther King Jr. engaged in civil disobedience to protest the racial injustice. He only believed that civil disobedience should be used for very limited circumstances.

23. 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 23 CHECKPOINT In the U.S. system of democracy, how are ethics reflected in laws? US democracy is based on the rules created by our constitution. Ethical content is based on the values of the people who elect legislators to make these rules.     

24. 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 24 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

25. 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 25 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.