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BUSINESS LAW ESSENTIAL STANDARD 1.00 OBJECTIVE 1.01 Understand ethics, sources of law, and legal systems.

BUSINESS LAW OBJECTIVE 1.01 ESSENTIAL QUESTIONS 1. What are ethics? What is ethical reasoning? 2. What are the sources of United States law? 3. What are the characteristics of the U.S. legal system?

Ethics A collection of standards of conduct and moral judgment forming the basis for a reasoned, impartial decision as to what is right or wrong.

How Ethical Decisions Are Made  Feelings and Opinions  The Greatest Good  The Golden Rule  Ethical Character Traits

How Ethical Decisions Are Made Feelings and Opinions - Some people base their ethical standards on whether or not the act “feels” right. Example: Mary comes from a poor family, but Travis’ family is wealthy. Mary believes that Travis has more money than he needs. When Travis leaves his backpack unattended, Mary steals it. She defends her actions by saying that she needs the backpack and that Travis can buy another one. Do you agree with what Mary did? In your opinion, did she hurt anyone’s feelings? Why or why not?

How Ethical Decisions Are Made The Greatest Good - Some people feel that an action that creates the greatest good for the greatest number of people is a sound basis for making ethical decisions. Example: Amy knows that 10 of her 20 classmates cheated on their last business law exam. The teacher mistakenly believes that only one innocent student is guilty of cheating. Amy decides she will keep silent because doing so will ensure the greatest good for the greatest number of people. Did Amy apply the principle of the Greatest Good correctly? Why or why not?

How Ethical Decisions Are Made The Golden Rule - Others base their ethical standards on the Golden Rule, which states: “Do unto others as you would have them do unto you.” Example: Bryce was judging a debate held in social studies class. He gave Mariah a better grade than she deserved because he knew she might be assigned to judge his debate. He wanted her to give him a good grade in return, regardless of whether he deserved it. Did Bryce apply the principle of the Golden Rule correctly? Why or why not?

Being open and truthful with other people Honesty Treating other people fairly and equally. Justice Being sympathetic to the difficulties of others. Compassion Doing what is right regardless of personal consequences. Integrity Ethical Character Traits

ETHICAL CHARACTERISTICS Class Discussion:  Who are some famous people in history or fiction who display more than one of the named character traits and what traits did he/she display?

Ethical Reasoning  Based on an analysis of the consequences of a proposed action or whether or not such an action is deemed wrong by existing rules.  Basic forms of ethical reasoning  Consequences-based ethical reasoning  Rule-based ethical reasoning  Ethics reflected in laws

Ethical Reasoning  Consequential Ethical Reasoning:  Alternative ways to change the current situation  Evaluates each alternative  Generates the greatest good  Rule Based Ethical Reasoning:  Fundamental ethical rule  Either a recognized authority or human reasoning  Acts themselves are judged as right or wrong

Ethical Reasoning  Ethics as Reflected in U. S. Laws and the U.S. Constitution:  Laws are judged to be right or good when they affect the majority of the people in a positive manner  AKA Majority Rule - Under the U.S. system of democracy, representatives must vote for laws that are acceptable to the majority of people if the representatives expect to be reelected.

IN THIS CASE As Gabriella was pulling out of her parking spot at the mall, her tires slipped on the coating of ice and snow left by a recent winter storm. Her car slid sideways, causing her bumper to crunch into the back fender of the car parked next to her. Gabriella's car was undamaged by the impact, but the bumper left a large dent and deep scratches on the other car. Gabriella realized she could just drive off without anyone knowing. Then she considered that the damage would probably cost more than a thousand dollars to repair. Consequently, she flagged down a mall security car and had the other owner paged so as to take appropriate responsibility. Did Gabriella act ethically?

ACTIVITY Ethical Scenarios 1. Before lunch, you find $20 in the restroom. What do you do? 2. You are working in the school store and a student wishes to purchase a sweatshirt, but only has $10. The price of the sweatshirt is $15. What would you do? 3. You are getting ready to take a test, but you have had to watch your siblings for the past two days and have not had any time to prepare. Your best friend, Alex, is also in the class with you and has offered to help you on the test. Nobody would see if you decided to take Alex up on the offer to help? What woud you do? 4. Sam has left his cell phone on the desk and gone to his next class. You have been trying to get online to see the score of a national baseball game and you notice that his phone has internet access. What would you do? 5. You have a "friend" who has just crossed the line by starting to date someone you are interested in. Another friend suggests that it would be a great idea to post something on Facebook about your previous "friend." What do you do? 6. Your friend just bought a new CD that you really like. He/she said they don't care if you copy it onto your computer.

ACTIVITY 2 Live Crew Raps Roy Orbison’s “Oh, Pretty Woman” ACUFF ROSE MUSIC INC. V. CAMPBELL 972 F. 2D 1429

Sources of Law Laws – Enforceable rules of conduct in a society Laws in this country are created at all 3 levels of government: 1. Federal 2. State 3. Local The forms that these laws can take include: 1.Constitutions 2.Statutes 3.Ordinances 4.Case Law 5.Administrative Law

Sources of Law  The Constitution:  A document that spells out the principles by which its government operates. When constitutions are adopted or amended, or when the court interprets the constitution, then constitutional law is made.  U.S. Constitution:  The main instrument for allocating powers between the people and their governments primarily through the Bill of Rights (Main Body of Document including the 1 st 10 Amendments).  “The Supreme Law of the Land” – Any Federal, State, or Local law is not valid if it conflicts with the US Constitution.  State Constitution - Sovereignty:  The U. S. Constitution allocated power between the federal and state governments. However the Tenth Amendment acknowledges sovereignty for all states to govern their citizens with their respective borders.

Sources of Law  English Common Law  Result of custom-based laws being unified by a system of appellate courts in England.  Also understood to be “law by precedent” – Courts used prior cases as a guide for deciding similar new cases  Statutory Law  Act of a legislature that declares, prescribes, or commands something.  Specific law, expressed in writing.  Local statutes or laws are usually called “ordinances”.

Sources of Law  Case Law  Usually made after a trial has ended and one of the parties has appealed the result to a higher court.  Based on an appealed case in which an appellate court issues a ruling based on their decision and new rules in deciding the appealed case as well as similar future cases.  The effectiveness of case law arises out of the doctrine of stare decisis. This is Latin for “let the decision stand”. This doctrine requires that lower courts must follow established case law in deciding similar cases.  Administrative Law  Body of rules created by government agencies  Examples: Federal Communications Commission (FCC)), federal Social Security Administration, your state’s DMV, and your county’s zoning commission

Sources of Law Within the state and federal systems, constitutional law prevails over statutory law and statutory law over administrative law. Finally, within each of the state and federal court systems, a higher court's decision prevails over a lower court's.

The United States Legal System Executive Branch  Carries out federal laws and recommends new ones, directs national defense and foreign policy, and performs ceremonial duties.  Consists of the President and the Vice President, of the United States, and the President’s Cabinet. A System of Checks & Balances (3 branches of government: 1.Executive Branch 2.Legislative Branch 3.Judicial Branch

The United States Legal System 2. Legislative Branch  Main task is to make the Laws  Headed by Congress, which includes the House of Representatives and the Senate.

The United States Legal System 3. Judicial Branch  Consists of the U. S. Supreme Court  Responsible for interpreting the Constitution, reviewing laws, and deciding cases involving states' rights.  Decides on the constitutionality of any statute passed by the legislative branch.  May decide if an action or decision by the Executive branch exceeds the powers granted under the Constitution. If so, this action or decision is void.

Federal Enforcement Agencies  Federal Bureau of Investigation (FBI): mission is to uphold the law through the investigation of violations of federal criminal statutes.  Divided into five functional areas: Criminal Law Enforcement Foreign Counterintelligence Investigative and Operational Support Law Enforcement Services Direction, Control, and Administration  United States Marshal Service:  Apprehend federal fugitives  Protect the federal judiciary  Operate the Witness Security Program  Transport federal prisoners  Seize property acquired by criminals through illegal activities

Federal Enforcement Agencies  Drug Enforcement Agency (DEA)  Enforce the controlled substances laws and regulations of the United States  Bring forward organizations and principal members of organizations involved in the growing, manufacturing, or distribution of controlled substances.  Department of Homeland Security  Prevent terrorist attacks within the United States.  Reduce the vulnerability of the United States to terrorism.  Minimize the damage, and assist in the recovery, from terrorist attacks that do occur within the US.

State and Local Agencies  North Carolina State Bureau of Investigation (SBI)  Division of the N.C. Department of Justice.  Assists local law enforcement with criminal investigations.  North Carolina State Highway Patrol  Reduce collisions and make the highways as safe as possible.  Active patrol and enforcement of N. C. State statutes and laws for motor vehicle operation.

State and Local Agencies  N.C. Sheriff Departments (by county or jurisdiction):  Responsible for the courts of the State.  Acting as their bailiff and marshal.  Administers and executes criminal and civil justice and acts as the ex officio detention officer for the jail.  Police Departments (local):  Within the corporate limits of their city or jurisdiction and one mile outside these limits.  Same powers that are vested to all officers by statute and common law, to enforce the laws and statutes of the State of N. C.