Essential Standard 1.00 Understand concepts of the legal system, trial procedures, and ethics. Unit A Business Law

Objective 1.01 Understand ethics, origins, and structure of the legal system

Ethics Rules used to determine the difference between right and wrong in a reasoned, impartial manner To involve ethics, a decision must affect you or others in some significant way 3 Elements 1.Decision about right or wrong action 2.Decision is reasoned 3.Decision is impartial Ethics

Decision about Right or Wrong Action Decision to buy blue jeans with wide pant legs or narrow pant legs? – Ethical component? Decision to discontinue medical support for an unconscious, terminally ill relative. – Ethical component? Many decisions have little effect on other persons or yourself To involve ethics, a decision must affect you or others in some significant way

Reasoned Decisions Ethical decisions must be based on reason, not our emotions Usually refer to a written authority that provides consistency – Law – Religious texts

Impartial Decisions Impartiality – The idea that the same ethical standards are applies to everyone Ethics does not value one person or group of persons more than any other does – Men vs. Women Each person is an individual and should receive equal respect and consideration from others

Impartial Decisions It requires us to make ethical decisions while we balance our self-interest with the interest of others If you hit someone’s car and no one sees you, is it ethical not to report it? – Who is affected? Particularly important when organizations and institutions are involved – “It was only the school’s property” – “Just the insurance company was cheated” – Consider how the people behind the institution are affected by the action

Origins of Ethics Greatest Good Examines whether the action will cause the greatest good for the greatest number of people The Golden Rule “Do unto others as you would have them do unto you”

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 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.

Based on Consequences Rightness or wrongness is based only on the results of the action Particular acts have no ethical, or moral character A good act = good consequences A bad act = bad consequences

Based on Ethical Rules Acts are either right or wrong – Truth = right – Lying = wrong Good consequences do not justify wrong or bad acts – Can’t justify lying even if it has good consequences

Business Ethics The ethical principles used in making business decisions Too often, ethics are not considered when business decisions are made Why? PROFIT MAXIMIZATION Move factories offshore and cut jobs to reduce costs – Increase profits for the business owners The profit maximization ethic will need to be replaced by the more humane ethical standards

Sources of Law The Constitution Principles by which its government operates Adopted and amended Constitutional law is made when the court interprets it U. S. Constitution Main instrument for allocating powers between the people and their governments. – Bill of Rights. State Constitution-Sovereignty US Constitution allocated power between the federal and state governments Tenth Amendment acknowledges sovereignty for all states to govern their citizens with their respective borders.

Constitutional Law The US Constitution is the supreme law of land. – Any state or local law that conflicts with the US Constitution is unconstitutional. – If unconstitutional, then law is null and void. The Supremacy Clause, US Constitution Article VI

Who has supremacy? A higher court prevails over any lower court decisions. A federal law prevails over state laws. State law prevails over municipal (town or city) ordinances. Supreme Court determines questions of constitutionality.

Sources of Law English Common Law Result of custom-based laws being unified by system of appellate courts in England. Colonists brought English Common Law doctrines with them to America Primary basis of American legal system 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 Statutory Law All statutes – Are subject to review by judicial system – Must be constitutional - cannot conflict with the United States Constitution Judicial Review Precedent set by Marbury vs. Madison, 1803, gave court system the right to: – Review lower court decisions – Review statutory laws – Review Executive Branch

Sources of Law Case Law Based on an appealed cases Appellate court issues a ruling based on their decision New rules in deciding the appealed case Sets precedence for similar future cases. Law of precedent Also called the Doctrine of stare decisis – Latin for “Let the decision stand” Administrative Law Body of rules created by government agencies. – (Ex. Federal Communications Commission)

Administrative Law Administrative law is the regulations, orders, rules and decisions of administrative agencies. Legislators create an administrative or regulatory agency. Purpose is to regulate certain activities for the benefit of the public.

Administrative (Regulatory) Agencies Have the power to: – Make rules – Enforce rules – Investigate violations – Decide guilt or innocence of violators – Penalize those convicted – Order actions to stop

Administrative Agencies Are set up when expert knowledge is needed Have a limited scope of power Are subject to judicial review by the court system

The United States Legal System A System of Checks and Balances This system was set up to ensure that no single branch exceeded it’s authority when making laws, statutes or decisions that may be in violation of the U. S. Constitution. Legislative Branch Consists of the U. S. Senate and the U. S. House of Representatives. Executive Branch Consists of the President and the Vice President, of the United States. Judicial Branch Consists of the U. S. Supreme Court 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.

Law Enforcement - Federal and State Federal Law 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 Agencies Drug Enforcement Agency (DEA) Enforce the controlled substances laws and regulations of the United States Bring to the criminal and civil justice system, those organizations and principal members of organizations, involved in the growing, manufacture, or distribution of controlled substances appearing in or destined for illicit traffic in the United States. Department of Homeland Security Mission is to: – 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 United States.

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 The SBI has statewide jurisdiction and investigates homicides, robberies, property crimes, and other serious cases. Involvement is at the request of the local department that maintains original jurisdiction over the case. The SBI has original jurisdiction in these areas: – Drug Investigations – Arson Investigations – Election Law Violations – Child Sexual Abuse in Day Care Centers – Theft and Misuse of State Property – Computer Crime Investigations that Involve Crimes Against Children

State and Local Agencies 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 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 (implied) 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.