1. COPYRIGHT © 2011 - JEFFREY PITTMAN Chapter 1 – Business and Its Legal Environment

2. Introduction Jeffrey Pittman 2 The following slides are not intended to be a complete treatment of Chapter 1 Additional resources from the textbook authors are found at the textbook companion websitetextbook companion website

3. Today’s Readings Don’t forget: You can copy- paste this slide into other presentations, and move or resize the poll.

4. What is the Law? Jeffrey Pittman 4 In a singular sense, law consists of mandatory rules promulgated by the government that regulate societal conduct In a plural sense, law establishes how society is governed, allowing society to function

5. Section 1 Jeffrey Pittman 5 Schools of Jurisprudential Thought

6. Jurisprudence Jeffrey Pittman 6 The science or philosophy of law is jurisprudence Jurisprudence deals with the question “What should be the law?" as opposed to the question “What is the law?”

7. Schools of Jurisprudential Thought Jeffrey Pittman 7 There are multiple schools of jurisprudence, many not presented in the textbook The textbook examines the following schools (see Concept Summary 1.1, p.4):  Natural Law  Positivist  Historical  Legal Realism

8. The Natural Law School Jeffrey Pittman 8 Natural law denotes a system of moral principles that are inherent in human nature The moral principles are usually identified through belief in God and a religious system, or through the application of human reason For example, consider the Declaration of Independence

9. Declaration of Independence Jeffrey Pittman 9 IN CONGRESS, JULY 4, 1776 The unanimous Declaration of the thirteen united States of America We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness

10. Martin Luther King Jeffrey Pittman 10 The natural law school influenced the civil rights movement of the 1960s – as reflected by Martin Luther King's writings The following letter excerpt was written after Reverend King lead peaceful civil disobedience against racial segregation in Birmingham, Alabama in 1963

11. Martin Luther King's Letter from Birmingham Jail Jeffrey Pittman 11 April 13, 1963 MY DEAR FELLOW CLERGYMEN: While confined here in the Birmingham city jail, I came across your recent statement calling my present activities "unwise and untimely."... I want to try to answer your statements in what I hope will be patient and reasonable terms

12. Martin Luther King's Letter from Birmingham Jail Jeffrey Pittman 12 You express a great deal of anxiety over our willingness to break laws. This is certainly a legitimate concern. Since we so diligently urge people to obey the Supreme Court's decision of 1954 outlawing segregation in the public schools, at first glance it may seem rather paradoxical for us consciously to break laws. One may ask: "How can you advocate breaking some laws and obeying others?"....

13. Martin Luther King's Letter from Birmingham Jail Jeffrey Pittman 13 The answer lies in the fact that there are two types of laws: just and unjust. Now, what is the difference between the two?... A just law is a man-made code that squares with the moral law or the law of God. An unjust law is a code that is out of harmony with the moral law

14. Martin Luther King's Letter from Birmingham Jail Jeffrey Pittman 14 We should never forget that everything Adolf Hitler did in Germany was "legal" and everything the Hungarian freedom fighters did in Hungary was "illegal"...

15. Positive Law Jeffrey Pittman 15 Analyze King’s last quote under positive law and legal realism, pages 3-4 in the textbook

16. Jurisprudence Question Under the schools of jurisprudential thought, how would you analyze the following section from the California Constitution (a section under current court review)? Cal. Const., Art. I § 7.5 (2010) § 7.5. - Marriage validity limited to man and woman Only marriage between a man and a woman is valid or recognized in California. Jeffrey Pittman 16

17. Your Understanding of Jurisprudence Don’t forget: You can copy- paste this slide into other presentations, and move or resize the poll.

18. Section 2 Jeffrey Pittman 18 Business Activities and the Legal Environment

19. Law & Business Jeffrey Pittman 19 The reach of law into the business realm is extensive One transaction may be affected by multiple laws See exhibit 1-1, page 5

20. Sections 3, 4, & 5 Jeffrey Pittman 20 Sources of American Law The Common Law Tradition The Common Law Today

21. Sources of American Law Jeffrey Pittman 21 At the federal level, the primary sources of law include the Constitution, federal statutes and regulations, and executive orders At the state level, the same sources of law exist – a constitution, statutes, etc. State courts also create law through the common law process, a power the federal government lacks

22. 1st Tier - Law Sources – in Rank Order 2nd Tier - The Common Law Process Jeffrey Pittman 1. US Constitution 2. Federal Statutory Law 3. State Constitution 4. State Statutory Law 5. Local Law Above sources are created by lawmakers and interpreted by courts – Stare Decisis is important regarding precedents Stare Decisis, or Overruling Precedent, or Creating First Precedent Common law is created by and found only in state court opinions 22 The Legal Process - An Overview

23. Understanding Don’t forget: You can copy- paste this slide into other presentations, and move or resize the poll.

24. Common Law Our common law (or case law) originated in the laws of William the Conqueror (1027- 1087, A.D.) Jeffrey Pittman 24

25. Common Law Jeffrey Pittman 25 Today, common law refers to court created rules in areas where constitutional and statutory rules are silent Common law is only created by state courts, not federal courts, and each state is sovereign and supreme in its common law

26. Courts of Law Courts of Equity Jeffrey Pittman Relief granted - usually money damages Jury trial allowed Time to sue governed by statutes of limitation Relief granted - usually court orders (e.g., injunctions, orders of specific performance, etc.) Jury trial not allowed Time to sue governed by the doctrine of laches 26 Distinctions Courts of Law - Courts of Equity

27. Stare Decisis Jeffrey Pittman 27 Stare Decisis, where past court decisions become precedent for future cases, is the cornerstone of our American judicial system Stare decisis is Latin for “let the decision stand” Lower courts must follow the precedent established by higher courts, but higher courts have the power to overturn their own precedents

28. Section 6 Jeffrey Pittman 28 Classifications of Law

29. Jeffrey Pittman 29 The law may be classified in a variety of categories Examples include substantive versus procedural, public versus private, and civil versus criminal Regarding high profile defendants and criminal law, see the blog Sentencing Law and PolicySentencing Law and Policy

30. Civil Law Criminal Law Jeffrey Pittman Area of concern: Rights and duties between individuals Wrongful act: Harm to a person or to a person's property Party who brings suit: Person who suffered harm Standard of proof: Preponderance of the evidence Remedy: Damages (money) and/or an equitable remedy Area of concern: Offenses against society as a whole Wrongful act: Behavior that violates a criminal statute Party who brings suit: The state Standard of proof: Beyond a reasonable doubt Remedy: Punishment (fine and/or imprisonment) 30 Civil versus Criminal Law

31. Cyberlaw Jeffrey Pittman 31 Cyberlaw is a new field of law comprised of legal principles applicable to business conducted via the Internet The Internet is not owned by a government; many of the standards of behavior are found in voluntary codes

32. Section 7 Jeffrey Pittman 32 How to Find Primary Sources of Law

33. Locating the Law Jeffrey Pittman 33 Court decisions are published in chronological order, using a case citation for identification Statutes are collected and published by subject matter, using a statutory citation

34. Legal Research Using Computers Jeffrey Pittman 34 Westlaw and Lexis-Nexis are the two leading fee- based computerized legal search systems Lexis-Nexis is available free for ASU students through the ASU library Web site A variety of smaller legal databases are available free on the WWW

35. Section 8 Jeffrey Pittman 35 How to Read and Understand Case Law

36. Elements of a Case Brief Jeffrey Pittman 36 Case name and citation Facts – a summary of the essential facts Issue – the legal question raised by the case Decision - the answer to the case question Reason(s) – the court’s reasoning for its ruling Using the above format, explain Berger v. City of Seattle