1. Copyright © 2010 South-Western Legal Studies in Business, a part of South-Western Cengage Learning. and the Legal Environment, 10 th edition by Richard A. Mann & Barry S. Roberts Essentials of Business Law and the Legal Environment, 10 th edition by Richard A. Mann & Barry S. Roberts

2. Copyright © 2010 South-Western Legal Studies in Business, a part of South-Western Cengage Learning. Topics Covered Chapter 1: Introduction to Law A.Nature of Law B.Classification of Law C.Sources of Law D.Legal Analysis

3. Copyright © 2010 South-Western Legal Studies in Business, a part of South-Western Cengage Learning. Nature of Law n Definition of Law—a rule of civil conduct prescribed by the supreme power in a state, commanding what is right, and prohibiting what is wrong” (Blackstone) n Functions of Law — to maintain stability in the social, political, and economic system through dispute resolution, protection of property, and the preservation of the state, while simultaneously permitting ordered change

4. Copyright © 2010 South-Western Legal Studies in Business, a part of South-Western Cengage Learning. Nature of Law (cont’d) n Legal Sanctions — are means by which the law enforces the decisions of the courts n Law and Morals — are different but overlapping; law provides sanctions, while morals do not n Law and Justice — are separate and distinct concepts; justice is the fair, equitable, and impartial treatment of competing interests with due regard for the common good

5. Copyright © 2010 South-Western Legal Studies in Business, a part of South-Western Cengage Learning. Law and Morals LAW “You must drive on the right side of the road.” MORALS “You should not silently stand by and watch a blind man walk off a cliff.” BOTH “Thou shall not kill.”

6. Copyright © 2010 South-Western Legal Studies in Business, a part of South-Western Cengage Learning. Classification of Law n Substantive and Procedural Law –Substantive— law creating rights and duties –Procedural— rules for enforcing substantive law n Public and Private Law –Public— law dealing with the relationship between government and individuals –Private— law governing the relationships among individuals and legal entities n Civil and Criminal Law –Civil— law dealing with rights and duties the violation of which constitutes a wrong against an individual or other legal entity –Criminal— law establishing duties which, if violated, constitute a wrong against the entire community

7. Copyright © 2010 South-Western Legal Studies in Business, a part of South-Western Cengage Learning. Classification of Law Substantive Law Public Law Constitutional Law Criminal Law Administrative Law Private Law Torts Contracts -- Sales Commercial Paper Agency Partnerships Corporations Property Methods of enforcement (courts) Procedural Law OR

8. Copyright © 2010 South-Western Legal Studies in Business, a part of South-Western Cengage Learning. Comparison of Civil & Criminal Law

9. Copyright © 2010 South-Western Legal Studies in Business, a part of South-Western Cengage Learning. Sources of Law n Constitutional Law -- fundamental law of a government establishing its powers and limitations n Judicial Law -- Common Law body of law developed by the courts and Equity based upon principles distinct from common law and providing remedies not available at law n Legislative Law -- statutes adopted by legislative bodies includes Treaties and Executive Orders n Administrative Law -- rules, regulations, orders, and decisions made by administrative agencies

10. Copyright © 2010 South-Western Legal Studies in Business, a part of South-Western Cengage Learning. Hierarchy of Law U.S. Constitution TreatiesFederal Statutes Federal Administrative Law Federal Common Law State Constitution State Statutes State Administrative Law State Common Law