1. Business Law
Chapter One
Our Laws

2. Our Laws and Legal System
Section 1.1
Our Laws and Legal System

3. Terms Laws-enforceable rules of conduct in a society
Code-grouping laws into an organized form
May see similarity between civilizations
Hammurabi (King of Babylon) code resembles U.S. code

4. Stages in the growth of law
Individuals are free to take revenge
Leader (sovereign) has enough power for wronged to accept money or goods for wrong
Leader gives power to system of courts (too much to handle).
Central authority acts to prevent and punish wrongs (by enforcing laws)

5. Common vs. Positive Law
Common Law-Law based on the current standards or customs of the people Positive law-Law set down by a ruler to prevent disputes from occurring (statute).

6. Two great systems of law
English common law-U.S except Louisiana
Roman civil law

7. The development of English common law
Feudal barons acted as judges in their territories. Decisions based on local customs
Result-laws varied by region. Hard to follow and no central government control
The King’s Courts (1150). King Henry II appointed nobles as judges.
“Ride circuit” to hold court
Bad weather-in London to hear cases that might have been decided unwisely on circuit. Called King’s (or Queen’s) Bench

8. Cont.
Barons-heard some minor cases but King’s Court took jurisdiction (the power to decide a case).
Judges created panels of citizens to decide court cases in harmony with customs (avoid unrest). Like today’s juries.

9. Advantages of English Common Law
Uniformity
Able to adapt to changes in society

10. Equity: An Alternative to Common Law
Common law followed precedents (using prior cases to decide similar cases) to provide stability
Adhere to proper form. Errors can result in case getting thrown out.
Also limited to remedy of money damages…must wait until harm occurs.
Equity law allows an for a decree to be ordered or an injunction prevent damages.

11. Cont. Injunction- an order that prevents something from being done
Originally, equity law involved having the King refer the matter to a chancellor, known for his equity (fairness) to hear matter. There was no jury.
Today, common law and equity courts are generally merged.

12. Common Law Equity Uniform Precedents Proper form Jury
Wait until harm occur
Chancellor heard cases
No jury
injunction

13. Section 1-2
Types of Laws

14. Sources of Law All levels of government…federal, state, and local.
Include constitutions, statues, administrative regulations, and case law

15. Constitutions
Constitution-document that sets forth the framework of a government and its relationship to the people it governs.
Constitutional law is made when constitutions are adopted or amended or when courts interpret constitutions.
The Supreme Court of the U.S. is the final interpreter of the U.S. Constitution and each state is the final interpreter of their state constitution.

16. Cont. Constitutions allocated powers:
Between the people and the government
Between state and federal government
Among branches of government

17. Allocation between people and government
U.S. Constitution
First 10 Amendment (Bill of Rights)

18. Allocation of power between federal and state government
Example: federal government governs international and interstate commerce (between states) and states govern intrastate commerce (within states)

19. Allocation of power among the branches of government
System of checks and balances to ensure that no branch (executive, legislative, or judicial) becomes too powerful.

20. Research a recent (2014 or 2015) case decided by the U. S
Research a recent (2014 or 2015) case decided by the U.S. Supreme court.
What were the details of the case and how was it decided?
Why was it heard by the USSC? What courts, if any, previously heard the case and what was the decision.
Cite your source(s).

21. Statutes
Laws enacted by legislatures (elected officials) Ordinance-legislation at local level (only effective within local boundary)

22. Cases
Case law-process of new rules or opinions being determined by the appeals process. (Judicial branch)
May be at state or federal level
Stare decisis-”let the decision stand”. Lower courts must follow case law.
*Does not generally bind supreme courts.

23. Administrative Regulations
Administrative agencies-government bodies created by legislatures to carry out particular laws.
Controlled (usually) by the executive branch
May have power to create rules and regulations
May have judicial power and can hold hearings, determine fact, and apply law

24. When laws conflict…. Supremacy rules Federal laws over state
State laws over local
Constitutional law over statutory
Statutory over administrative

25. Cases cont. Constitutions and Validity
Federal constitution is “the supreme law of the land”. No law may contradict.
Same for state constitution at the state level
Unconstitutional (determined by supreme court)

26. Cases Cont. Statutes and Validity
Statutes and ordinances must be constitutional.
Cannot exceed the scope of powers delegated.
Commerce is regulated by federal government
States set penalties for murder

27. Cases cont. Administrative Regulations and Validity
Can be reviewed by courts to determine constitutionality.
Must be within the scope of power delegated to it.

28. Cases Cont. Case Law and Validity
Legislative body can abolish or rewrite a statue or ordinance (nullifying court’s interpretation)
Constitution can be changed

29. Criminal vs. Civil Law Civil law-wrongs against individuals
Right to sue (seek legal remedies)
Criminal law-activities that violate the right to live in peace
Crime-offense against society
Conviction can result in fine, imprisonment, or execution
May be both!

30. Procedural vs. Substantive Law
Procedural law- set forth how rights and responsibilities can be legally exercised and enforced. Deals with methods of enforcing legal rights and duties (how to arrest)
Civil and criminal
Substantive law-defines rights and duties. Defines offenses (murder, breach of contract, etc)

31. Business Law Concentrates on civil law, especially contracts.
Torts-private wrongs against people or organizations
UCC(Uniform Commercial Code)-set of business laws that govern business
Has helped to make state laws more alike. (Although this is not required)

32. Ethical Bases for Laws
Section 1-3

33. Ethics-a collection of standards of conduct and moral judgment forming the basis for a reasoned, impartial decision as to what is right or
Ethical system-organized and consistent compilation of such standards set down by an established authority. (Torah, Bible, Koran)
Impartial-applying the same ethical standards to everyone (balance our self-interest with others).

34. Business Ethics Ethical principles used in making business decisions
In conflict with profit maximization!

35. Assignment
Find an example of what you consider unethical behavior exhibited by a business (or a business leader).
Explain the situation.
What did they do that was unethical?
Did this also violate law? Which law?
What should they have done?
What was the consequence of the behavior (fine, citation, law suit. etc).
Include the source.
Be prepared to discuss!

36. Basic Forms of Ethical Reasoning
Two forms
Consequences-If the consequence is good, the act is good
Ethical rules-acts are either right or wrong
Most of the time, the two conclusions are the same

37. Consequences-based Ethical Reasoning
Looks for alternative ways
Forecasts the consequences for each alternative
Evaluates consequences. Which will generate the greatest good
Selecting the standard for judging consequences as right or wrong. Called “The Good”. The primary goal toward which human life should be directed. (love, justice, truth, pleasure)
Counting the persons affected (by greatest good for greatest number of people)

38. Rule-based Ethical Reasoning
Actions themselves are judged as right or wrong
Standards for judging based on one of two sources—
Recognized authority-law or religious text. Doesn’t matter how many would benefit.
Human reasoning-universalizing-what would it be like if everyone did it?

39. Both conclude that humans have dignity and worth and have moral rights (rightful claims on other people that flow from each person’s status as a human being).

40. Our laws reflect ethics based on consequences
Majority rule for electing officials and passing laws (officials represent the opinion of the people that elected them)
Because of this, it uses features of consequence based ethics when passing laws (laws and consequences are good for the majority)

41. Our laws reflect ethic based on rules
To protect the minority, Bill of Rights affords civil rights to everyone.

42. The law must be followed because…
More are injured than benefit when laws are broken (consequence based)
Breaking the law is wrong (ethical rule)
Universalizing (ethical rule)

43. Because people will still break laws….
Fidelity bond-an insurance policy that pays money in case of theft by employees
Scofflaws-persons who do not respect the law. Consider benefit vs. chance of being caught.
Integrity-capacity to be right in the face of temptation or pressure to do otherwise.

45. Civil disobedience
Open, peaceful, violation of a law to protest its alleged injustice.
Ethical when:
Law conflicts with ethical reasoning
No effective political method to change law
Nonviolent
Does not advance person’s immediate self-interest
Public and accepting of punishment