Chapter 01 An Introduction to Dynamic Business Law McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Business Law Definition: Enforceable rules of conduct that govern commercial relationships 1-2

Functional Areas of Business Affected By Business Law Corporate Management Corporate Management Production and Transportation Production and Transportation Marketing Marketing Research and Development Research and Development Accounting and Finance Accounting and Finance Human Resource Management Human Resource Management 1-3

Purposes of the Law Providing order Providing order Serving as an alternative to altercation Serving as an alternative to altercation Facilitating a sense that change is possible Facilitating a sense that change is possible Encouraging social justice Encouraging social justice Guaranteeing personal freedoms Guaranteeing personal freedoms Serving as a moral guide Serving as a moral guide 1-4

Classification of Law Private Law: Involves disputes between private individuals or groups Private Law: Involves disputes between private individuals or groups Public Law: Involves disputes between private individuals or groups and their government 1-5

Classification of Law Civil Law: Involves the rights and responsibilities involved in relationships between persons and between persons and their government Civil Law: Involves the rights and responsibilities involved in relationships between persons and between persons and their government Criminal Law: Involves incidents in which someone commits an act against the public as a whole 1-6

Sources of Business Law Constitutions Constitutions Statutes Statutes Cases Cases Administrative Law Administrative Law Treaties Treaties Executive Orders Executive Orders 1-7

Major Federal Administrative Agencies (Independent) Commodity Futures Trading Commission Commodity Futures Trading Commission Consumer Product Safety Commission Consumer Product Safety Commission Equal Employment Opportunity Commission Equal Employment Opportunity Commission Federal Trade Commission Federal Trade Commission Federal Communications Commission Federal Communications Commission Interstate Commerce Commission Interstate Commerce Commission National Labor Relations Board National Labor Relations Board National Transportation Safety Board National Transportation Safety Board Nuclear Regulatory Commission Nuclear Regulatory Commission Securities and Exchange Commission Securities and Exchange Commission 1-8

Major Federal Administrative Agencies (Executive) Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation Occupational Safety and Health Administration Occupational Safety and Health Administration General Services Administration General Services Administration National Aeronautics and Space Administration National Aeronautics and Space Administration Small Business Administration Small Business Administration U.S. Agency for International Development U.S. Agency for International Development National Science Foundation National Science Foundation Veterans Administration Veterans Administration Office of Personnel Management Office of Personnel Management 1-9

Schools of Jurisprudence Natural Law Natural Law Legal Positivism Legal Positivism Identification with the Vulnerable Identification with the Vulnerable Historical School: Tradition Historical School: Tradition Legal Realism Legal Realism Cost-Benefit Analysis Cost-Benefit Analysis 1-10