Dynamic Business Law, 6th Edition
xx!! xx!! xx!! xx!!
By Nancy Kubasek
xx!! xx!! xx!!
,Chapter 1 - An Introduction to Dynamic Business Law xx!! xx! xx!! xx!! xx!! xx!! xx!! xx!!
CHAPTER OVERVIEW xx!!
Chapter One lays the foundation for the textbook. Make sure you look on the publisher‘s web site
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
for information about how business law intersects with the six functional areas of business. The
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
authors encourage students to ―connect to the core,‖ and remember the ways in which law intersects
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
with other areas of study, including corporate management, production and transportation, marketing,
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
research and development, accounting and finance, and human resource management.
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
This manual supports the ―connecting to the core‖ theme by giving ideas for assignments that
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
encourage students to integrate their business law knowledge with knowledge they are acquiring from
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
their other business classes. The manual also encourages professors to improve their teaching skills.
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
Finally, the manual suggests teaching ideas for both beginning and experienced teachers.
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
LEARNING OBJECTIVES xx!!
After reading this chapter, students will be able to:
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
1-1 Define business law. xx!! xx!!
1-2 Relate the functional areas of business to the relevant areas of business
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
law1-3 Recall the purposes of law.
xx!! x! xx!! xx!! xx!! xx!! xx!!
1-4 Distinguish among types of law. xx!! xx!! xx!! xx!!
1-5 Differentiate between sources of the law. xx!! xx!! xx!! xx!! xx!!
1-6 Identify the various schools of jurisprudence. xx!! xx!! xx!! xx!! xx!!
LECTURE NOTES WITH DEFINITIONS xx!! xx!! xx!!
In the news…
xx!! xx!! Teaching tip: For each chapter, consider asking students to relate current
xx!! xx!! xx!! xx!! xx!! xx! ! xx!! xx!! xx!! xx!!
newsitems to material from the chapter.
xx !! x! xx!! xx!! xx!! xx!! xx!!
In addition to ideas students come up with on their own, consider
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
weaving innews stories provided by the McGraw Hill.
xx!! xx!! x! xx!! xx!! xx!! xx!! xx!! xx!!
For Chapter One, McGraw Hill offers the following stories:
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
―Smoking Ban: Tobacco Tyrants: Gone Too Far? Many States Are xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
PuttingStronger Restrictions on Where You Can Smoke‖
xx!! x! xx!! xx!! xx!! xx!! xx!! xx!!
Have states gone too far in banning smoking? xx!! xx!! xx!! xx!! xx!! xx!! xx!!
, Whose interests are x x ! ! x x ! ! x x ! ! state x x ! ! legislatures x x ! ! looking x x ! ! out x x ! ! for x x ! ! in
banningsmoking?
x x ! ! x!
Should regulators take a more careful look at college officers? xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
Why created changes in the ways college officers interact with lenders?
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
1-1 Define x x ! ! Business law consists of the enforceable rules of conduct
x x ! ! x x ! ! x x ! ! x x ! ! x x ! ! x x ! ! x x ! ! x x ! !
businesslaw.
x x ! ! x! that governcommercial relationships.
x x ! ! x x ! ! x! xx!!
1-2 Relate the
xx!! xx!! Business law applies to the six functional areas of business:
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
functional areas
xx!! xx!!
Corporate management xx!!
ofbusiness to the
Production and transportation
xx!! x! xx!! xx!!
relevant areas of
xx!! xx!! xx!!
xx!! xx!!
business law.
xx!! xx!!
Marketing
Research and development xx!! xx!!
Accounting and finance xx!! xx!!
Human resource management xx!! xx!!
1-3 Recall the
xx!! xx!! Providing order xx!!
purposes of
xx!! xx!!
Serving as an alternative to fighting xx!! xx!! xx!! xx!! xx!!
law.
Facilitating a sense that change is possible
xx!!
xx!! xx!! xx!! xx!! xx!! xx!!
Encouraging social justice xx!! xx!!
Guaranteeing personal freedoms xx!! xx!!
Serving as a moral guide xx!! xx!! xx!! xx!!
1-4 Distinguish
xx!! One way to classify law:
xx!! xx!! xx!! xx!!
among types of
xx!! xx!! xx!!
Private law involves disputes between private individuals or groups.
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
law.
xx!!
Public law involves disputes between private individuals or groups
xx!! x x ! ! xx ! ! x x ! ! x x! ! x x!! x x!! x x ! !
and theirgovernment.
xx! ! xx!! x!
A second way to classify law:
xx!! xx!! xx!! xx!! xx!!
Civil law involves the rights and responsibilities involved in
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
relationshipsbetween persons and between persons and their government.
xx!! x! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
Criminal law involves incidents in which someone commits an act
xx!! xx!! xx!! xx! ! xx !! xx! ! xx! ! xx ! ! x x! !
against thepublic as a unit.
xx!! x x! ! x! xx!! xx!! xx!!
Teaching tip: Ask students to give an example of a fact xx!! x x ! ! xx!! xx ! ! x x ! ! xx ! ! x x !! x x ! ! x x ! ! xx!!
situation that led toboth criminal and civil lawsuits, e.g., the O.J.
x x ! ! x x ! ! x x! ! x x ! ! x! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
Simpson trials.
xx!! xx!!
1-5 Differentiate
xx!! Sources of business law are: xx!! xx!! xx!! xx!!
between sources
xx!! xx!!
1. Constitutions
ofthe law.
xx!! x! xx!!
Constitutional law refers to the general limits and powers of xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
governments asstated in their written constitutions.
xx!! xx!! x! xx!! xx!! xx!! xx!!
2. Statutes or legislative actions xx!! xx!! xx!!
3. Cases
Case law (or common law) is the collection of legal
x x ! ! x x ! ! x x ! ! xx! ! xx !! xx!! xx !! xx! ! x x ! !
interpretations made byjudges.
xx!! xx ! ! xx! ! x!
Stare decisis means courts are relying on precedent.
xx!! xx!! xx!! xx!! xx!! xx!! xx!!
Teaching tip: The first time your students encounter an appellate
xx!! xx!! xx!! xx!! x x ! ! xx!! xx!! xx!! xx!!
case in the
xx!! xx!! xx!!
, readings, show them what stare decisis looks like in the context of a real case.
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
4. Administrative law xx!!
Administrative law is the collection of rules and x x ! ! x x ! ! x x ! ! x x ! ! x x ! ! x x ! ! x x ! !
decisions made byadministrative agencies.
x x ! ! x x ! ! x x ! ! x! xx!!
5. Treaties
A treaty
x x ! ! is a binding agreement between two states
x x ! ! x x ! ! x x ! ! x x ! ! x x ! ! x x ! ! x x ! !
or
x x ! ! internationalorganizations.
x x ! ! x!
6. Executive orders
x x ! ! xx!!
An executive order is a directive that comes from the president or
xx !! xx!! xx!! xx! ! xx!! x x! ! x x! ! x x! ! xx!! x x! ! xx!!
stategovernor.
xx !! x!
1-6 Identify the
xx!! xx!! Schools of jurisprudence are common guides to legal interpretation.
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
various schools
xx!! xx!!
Natural law—certain ethical laws and principles are morally xx!! xx!! xx!! xx!! xx!! xx!! xx!!
ofjurisprudence.
xx!! x!
right and xx!! xx!!
―above‖ the laws devised by humans. xx!! xx!! xx!! xx!! xx!
Legal Positivism—assumes the legitimate political authority x x ! ! x x ! ! x x ! ! x x ! ! x x ! !
deservesour obedience when it issues a rule.
x x ! ! x! xx!! xx!! xx!! xx!! xx!! xx!!
Identification with the Vulnerable—emphasis on fairness and xx!! xx!! xx!! xx!! xx!! xx!!
lookingout for those with the least power.
xx !! x! xx!! xx!! xx!! xx!! xx!! xx!!
Historical School/Tradition—emphasis on the use of stare decisis. xx!! xx!! xx!! xx!! xx!! xx!! xx!!
Legal Realism—judges consider social and economic conditions. xx!! xx!! xx!! xx!! xx!! xx!!
Cost-benefit Analysis—make calculations to maximize the ratio xx!! xx!! xx!! xx!! xx!! xx!!
ofbenefits to costs. xx!! x! xx!! xx!!
Teaching tip: Consider using ―The Case of the Speluncean Explorers (link
xx!!xx! xx!! xx!! xx!! xx! xx!!xx! xx!!xx! xx!! xx!! xx!!xx! xx!! xx!! xx!! xx! xx!!xx!
below) to make the schools of jurisprudence come alive.
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
Global and xx!! At this point in the textbook, students should merely have an awareness that
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
Comparative Law
xx!! xx!! globalization has affected the scope of business law. Consequently,
xx!! we xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! x x ! !
highlight the definitions to the following key terms that will
xx!! xx!! come up xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! x x ! ! xx!!
later in the book:
xx!! xx!! xx!! xx!!
Trade, i.e. the exchange of goods or services, on a global
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
scale has led to the creation of trade agreements that serve as de
xx!! xx!! xx!! x! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
facto rules governingthe global business environment.
xx!! xx!! xx!! x! xx!! xx!! xx!!
Comparative law—the field of law that studies and compares laws in xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
different countries.
xx!! xx!!
Appendix on xx!! Critical thinking includes the application of evaluative standards to assess the
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
CriticalThinking and
xx!! x! xx!! quality or the reasoning being offered to support the conclusion. Critical
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
Business
xx!! thinkers will follow this pattern of careful thinking when they read
xx!! xx!! anxx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! x x ! !
argument:
xx!!
1. Find the facts. xx!! xx!!
2. Look for the issue. xx!! xx!! xx!!
3. Identify the judge‘s reasons and conclusion. xx!! xx!! xx!! xx!! xx!!
4. Locate in the decision the rules of law that govern the judge‘s reasoning.
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
5. Apply critical thinking to the reasoning. Evaluate the reasoning.
xx!! xx!! xx!! xx!! xx!! xx!! xx!! xx!!
Look for potential ambiguity. xx!! xx!! xx!!
Consider the strength of analogies. xx!! xx!! xx!! xx!!
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller STUVATE. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
