1. Business and Personal Law
Chapter 1
Ethics and the Law

2. What we’ll explore . . . How ethical decisions are made
How ethics and the law differ
The importance of law
The relationship between ethics and the law
The primary sources of American law

3. How do you know the difference between right and wrong?

4. Defining Ethics
Laws generally reflect and promote the values of our society
Ethics
The study of values, of how we ought to live
Used interchangeably with morals and values
Challenging
Citizens have different views
Diverse backgrounds

5. Code of Ethics
Throughout your life you will be faced with ethical decisions
Personal – determined by one’s beliefs, attitudes, religion, family and friends
Business – collection of principles and rules of conduct for an organization

6. Ethics - continued Values Very important in Business
Standards or ideals to guide our conduct and decision-making
Very important in Business
Many professions also have a “code of ethics” to abide by

7. 5 Cornerstones to Ethical Behavior
Do what you say you will do
Never divulge information given to you in confidence
Accept responsibility for your mistakes
Never become involved in a lie
Avoid accepting gifts that might compromise your ability to be objective

8. Views Feelings and Opinions The Greatest Good The Golden Rule
Right & wrong can change
The Greatest Good
Actions affect others
Greatest good for greatest number
The Golden Rule
Respects dignity & worth of individuals
Can be applied to most situations

9. Ethical Character Traits
Honesty
Justice
Compassion
Integrity

10. Ethical Decision Making Model
What are the issues
What are the alternatives
Who are the affected parties?
How do the alternatives affect the parties
Points to consider –
Is it legal is it balanced is it fair

11. Relationship between Ethics and the Law
Ethics tell us what we ought to do
Laws are needed because people don’t always do what they should
Law: System of rules established by government to maintain stability in society.

12. Ethical and Legal Conflicts
Because law is made by people, it is imperfect
Legislators and judges bring their personal views.
Examples where something can be legal but unethical????

13. Section 1.2 – Sources of Law
Constitution
Federal and State
English Common Law
Statutes
Court Decisions
Administrative Law

14. Constitution Sets forth basic rights of citizens
Bill of Rights – 1st 10 amendments
Limit powers of the government
Protect individual Rights
Protect rights of someone accused of a crime
State Constitution – each has one
Not identical to federal constitution
Can be more protective, narrower, more restrictive

15. Common Law Rooted in English Common Law
All states except Louisiana
Judges made decisions based on customs & traditions
Formed a “common law”
Court decisions
Rely on a “precedent”
Stare decisis – let the decision stand

16. Statutory Law Statutes Can be federal, state or local
Passed by a governing body
Can be federal, state or local
National – Congress
Wisconsin – Assembly
State legislatures cannot pass laws that conflict with the U.S. Consitution.

17. Court Decision Court-made Law Case Law Courts make laws in 3 ways:
Common law tradition
Interpreting statutes
Judicial Review
Decisions made by highest court becomes law of the state

18. Administrative Agencies
Legislators give power to agencies to regulate activity.
Examples
IRS
FCC
Have a wide range of powers
Need checks & balances on their power.