This is about engineering ethics

1.  CONSTITUTIONAL BASIS FOR
BUSINESS REGULATION
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2. CONSTITUTIONAL BASIS FOR
BUSINESS REGULATION
US Constitution:
 imposes limitations on the way business is conducted;
 gives governments power to regulate business activities;
 provides that certain rights cannot be taken away from private
persons and businesses;
 allocates responsibility for regulating business to the 3 branches of
government: the legislative, the executive and the judicial
(separation of powers)
The Constitution itself provides that it may be amended to
address economic and social changes.

3. Constitution of the United
States
The US Constitution serves two major functions:
1. It creates the three branches of the federal
government and allocate powers to them:
Legislative - creates laws – Congress (the Senate and
the House of Representatives)
Judicial - interprets laws – Supreme Court
Executive - enforces laws - President and the Vice-
President
2. It protects individual rights by limiting the government’ s
ability to restrict those rights.

4. Checks and Balances
Certain checks and balances are built into the
Constitution to ensure that no one branch of the
federal government becomes too powerful:
 The judicial branch has authority to examine
the acts of the other two branches of government
and determine whether those acts are
constitutional.
 The executive branch can enter into treaties
with foreign governments only with the advice
and consent of the Congress.
 The legislative branch is authorized to create
federal courts and determine their jurisdiction
and to enact statutes that change judicially made
law.

5. Judicial power
The judiciary (also known as the judicial system or court
system) is the system of courts that interprets and applies
the law.
 provides a mechanism for the resolution of disputes.
 ensures equal justice under law.
 usually consists of a court of final appeal (called the
"Supreme court" or "Constitutional court"), together with
lower courts
 In many jurisdictions the judicial branch has the power to
change laws through the process of judicial review.
 Courts with judicial review power may annul the laws and
rules of the state when it finds them incompatible with a
higher norm, such as primary legislation, the provisions of
the constitution or international law.

6. Legislative Power
 the Legislative Branch consists of the House of
Representatives and the Senate, which together
form the US Congress.
 The Constitution grants Congress the sole authority
to enact legislation and declare war, the right to
confirm or reject many Presidential appointments,
and substantial investigative powers.
 Under the nondelegation doctrine, Congress
may not delegate its lawmaking responsibilities to
any other agency.

7. Executive Power
 The Constitution (Article II) defines executive
power of the president
 President is responsible for implementing and
enforcing the laws written by Congress.
 Various executive functions may be delegated
within the executive branch by the President or by
Congress:
- appoint the justices of the US Supreme Court
with the advice and consent of the Senate;
- appoint all ambassadors and consuls;
- approve or disapprove acts of Congress/veto
power. Congress can override the veto by 2/3
vote of House of the Representatives and the
Senate

8. Executive Power
- although only Congress can formally
declare war, the President may take military
actions as a commander-in-chief of
armed forces
- make treaties/executive agreements
 The President has extensive power on
foreign affairs
 May veto laws

9. CASE CLINTON V. CITY OF NEW YORK
 In August 1997 President Bill Clinton signed the Balanced Budget Act into law.
Six days later, pursuant to the Line Item Veto Act (the Act) , he canceled a
provision benefiting the city of New York and certain hospitals, thereby reviving
a $2.6 billion contingent liability that Congress had eliminated in the Balanced
Budget Act. In that same month, President Clinton signed into law the
Taxpayer Relief Act but canceled certain tax breaks favorable to farmers’
cooperatives. The canceled provisions would have permitted persons selling
their stock in a qualified agricultural refiner or processor corporation to a
farmers’ cooperative to defer paying $98 million in taxes over the next five
years and $155 million over the next ten.
 The city of New York sued to invalidate the line-item veto, as did Snake River
Potato Growers, Inc. which had been actively pursuing a transaction that was
dependent on the canceled tax breaks. The federal district court declared the
line-item veto unconstitutional and President Clinton appealed.
 ISSUE PRESENTED: Does the line-item veto Act violate the requirements if
bicameral passage and presentment to the president or separation of powers?

10. IMMUNITIES TO PRESIDENT
 is immune from criminal prosecution prior to
impeachment
 May not be sued for damages resulting from official
acts
 Executive privilege which protects against the
forced disclosure of presidential communications
 Executive privilege also protects the president from
being sued for his or her official acts.
 The one-house legislative veto violates the
constitutional requirements of bicameralism (action
by both houses of Congress) and presentment of
legislation to the president

11.  Watergate scandal:
an incident during the 1972 US presidential
campaign, when a group of agents
employed by the re-election organization of
President Richard Nixon were caught
breaking into the Democratic Party
headquarters in the Watergate building,
Washington, DC.
 The consequent political scandal was
exacerbated by attempts to conceal the
fact that senior White House officials had
approved the burglary, and eventually
forced the resignation of President Nixon

12. LIMITS ON STATE POWERS
 The Constitution impose many limits on
state action
 Congress’s action preempts state action
because the Supremacy Clause makes
federal laws supreme over state laws
 State law is preempted when it directly
conflicts with federal law.

13. Sources of Law - USA
 Constitutions
 Treaties (with foreign countries)
 Codified Law: Statues and ordinances
 Statutes are enacted by Congress and state
legislatures.
 Ordinances are enacted by municipalities and local
government agencies.
 Administrative agency rules and regulations
 Executive orders issued by the President and
governors of states
 Judicial decisions made by courts

14. Azerbaijan Law System
 The Constitution of Azerbaijan Republic has the
highest legal force in the territory of Azerbaijan.
 Constitution is the supreme law of the land and
any law that is found to be in conflict with it
unconstitutional and therefore unenforceable.
 The constitution of a country is a set of rules
regulating the powers of its government and the
rights and duties of its citizens.

15. Sources of Law - Azerbaijan
The sources of law in the Azerbaijani legal system
are:
The Constitution of Azerbaijan
Acts adopted via referendum
Laws passed by the Milli Meclis of Azerbaijan,
Azerbaijan's legislature
Decrees
Resolutions of the Cabinet of Ministers
International treaties to which Azerbaijan is a
party

16. Separation of Powers
 Azerbaijani state is democratic, legal, secular,
unitary republic.
 Religion is separated from the State.
 State power is based on the principle of division of
powers:
 Milli Majlis (Parliament) exercises legislative
power;
 Executive power belongs to the President; and
 Courts exercise judicial power.

17. Supremacy Clause of
US Constitution
 Establishes that the Federal Constitution,
treaties, federal laws and federal
regulations are the supreme law of the
land.
 No state law can conflict with them.
 If the state law conflict with the federal
law, the state law is preempted.
 Common Law Tradition - American law is
based on the English legal system

18. Sources of Law
 Unlike common law systems such as
the United States and United Kingdom,
Azerbaijani courts do not rely extensively
on case law and judicial precedent.
 English common Law (Case law) -
developed by judges who issued their opinions
when deciding a case. The principles became
precedent for later judges deciding similar
cases.
 Precedent - a rule of law established in a court decision.
Lower courts must follow the precedent established by higher
courts.

19. Sources of Law
The Doctrine of Stare Decisis – the common
law doctrine which translates as “to abide by
decided cases” meaning once a court resolves
a particular issue, other courts addressing a
similar legal problem will generally follow that
court’s decision.

20. Sources of European
Union law
 https://eur-lex.europa.eu/legal-
content/EN/TXT/?uri=LEGISSUM
%3Al14534
 There are three sources of EU
law: primary law, secondary law
and supplementary law

21.  Primary law also includes:
 the amending EU Treaties;
 the protocols annexed to the founding treaties and to the amending treaties;
 the treaties on the accession of new countries to the EU;
 the Charter of Fundamental Rights;
 general principles of law established by the Court of Justice of the European
Union.
 Secondary law
 Secondary law comprises unilateral acts, which can be divided into two
categories:
 those listed in Article 288 TFEU: regulations, directives, decisions, opinions and
recommendations;
 those not listed in Article 288 TFEU, i.e. atypical acts such as communications and
resolutions,.
 International agreements .
 Supplementary sources of law
 Supplementary sources are elements of law not specifically mentioned in the
treaties. This category includes:
 case-law of the Court of Justice of the EU (CJEU);
 international law — often a source of inspiration for the CJEU when developing
its case-law. The CJEU cites written law, custom and usage;
 general principles of law — unwritten sources of law developed by the case-
law of the CJEU. They have allowed the CJEU to implement rules in various areas
that are not mentioned in the treaties.

22. Classifications of Law
Copyright © 2015
Pearson Education,
Ltd. 2-22
• Made by the legislative branch of government
Statutory law
• Law resulting from judicial interpretations of
constitutions and statutes
Case law
• Composed of federal and state statutes
prohibiting wrongful conduct ranging from
murder to fraud
Criminal law
A Critical Reasoning Approach, Nancy K. Kubasek, Bartley A.
Brennan, M. Neil Browne

23. Classifications of Law
• Governing litigation between two private parties
Civil law
• Deals with the relationship of government to
individual citizens
Public law
• Deals with the enforcement of private duties
Private law
Copyright © 2015
Pearson Education,
Ltd. 2-23
A Critical Reasoning Approach, Nancy K. Kubasek, Bartley A.
Brennan, M. Neil Browne

24. Classifications of Law
2-24
• Creates and regulates legal rights
Substantive law
• Sets rules for enforcing substantive rights in a court of
law
• Helps to obtain a remedy in a court of law
Procedural law
• Not a new type of law
• Applies the traditional categories of law to a new form
of communication like online communication
Cyber law
A Critical Reasoning Approach, Nancy K. Kubasek, Bartley A.
Brennan, M. Neil Browne

25. Classification of Law
 Criminal law establishes duties to society
 Government charges and prosecutes
defendant, who is found guilty or innocent.
 Civil law establishes duties between private
parties
 Plaintiff sues defendant for monetary
damages

26. Civil Law vs. Criminal Law
 Civil law
1. Involves damages
2. Individual vs. individual
3. Superiority of the evidence
 Criminal law
1. Involves punishment
2. Society is involved
3. Beyond a reasonable doubt

27. Functions of the Law
The primary functions served by the law are:
1. Keep the peace
2. Shape moral standards (e.g., enacting laws
that discourage drug and alcohol abuse)
3. Promote social justice (e.g., enacting
statutes that prohibit discrimination in
employment)
4. Maintain the status quo (e.g., passing laws
preventing the forceful overthrow of the
government)

28. Functions of the Law
5. Facilitate orderly change (e.g., passing
statutes only after considerable study, debate
and public input)
6. Facilitate planning (e.g., well-designed
commercial laws allow businesses to plan their
activities, allocate their productive resources and
assess the risk they take)
7. Provide a basis for compromise
8. Maximize individual freedom (e.g., the
rights of freedom of speech, religion and
association granted by the Constitution)

29. Constitution became effective on September 25,
1789. The 1st ten amendments were added in 1791 –
BILL OF RIGHTS
1st Amendment
Ensures the five basic freedoms: freedom of religion,
freedom of speech, freedom of the press, freedom to
assemble and freedom to petition the government to
remedy grievances/complaints
2nd Amendment
Ensures the right to own firearms (as an individual right)
3rd Amendment
Ensures private citizens that they cannot be forced to
house U.S.soldiers during peace
(It prohibits, in peacetime, the quartering of soldiers in
private homes without the owner's consent, legally
permissible in wartime only, and then only in accordance
with law).

30. 4th Amendment
Protects against unreasonable police searches or seizures
without a warrant issued by a court and based on probable
cause
5th Amendment
1) contains grand jury requirements;
2) forbids double jeopardy (being twice tried for the same
crime);
3) prohibits forcing a person to be witness against himherself;
4) prohibits deprivation of lifelibertyproperty without due
process of law;
5) requires just compensation when private property is taken
for public use.
6th Amendment
Establishes the rights of citizens in regard to trials and
juries, guarantees a speedy and public jury trial in all
criminal prosecutions;

31.  7th Amendment
Guarantees the right to jury trial in all civil (non-criminal)
cases
 8th Amendment
Protects against "cruel and unusual" criminal punishments
and extraordinarily large fines
 9th Amendment
States that just because a right is not specifically listed in the
Constitution, does not mean that right should not be
respected, i.e. rights of people not limited to those listed in
the Constitution
 10th Amendment
Reinforces the principle of federalism by stating that the
federal government possesses only those powers delegated
to it by the states or the people through the Constitution.
(the basis of power sharing)

32.  13th Amendment
Abolishes slavery in all states
It was passed by the Senate on April 8, 1864
 15th Amendment
Prohibits the use of race as a qualification to vote
It was ratified on February 3, 1870
 17th Amendment
Specifies that U.S. Senators will be elected by the people,
rather than the state legislatures
 19th Amendment
Prohibited the use of gender as a qualification to
vote It was ratified on August 18, 1920
 26th Amendment
Grants 18-year olds the right to vote (1971)

33. DUE PROCESS
 The prohibition against depriving any
person of “life, liberty or property without
the due process of law” applies to the
federal government via the 5th Amendment
 Procedural Due Process – focuses on
fairness of the legal proceedings.
 Substantive Due Process – focuses on
fundamental rights (for privacy, liberty, etc.)
protected by the due process clauses

34. COMPENSATION FOR
TAKINGS
 Private property may not be taken for
public use without just compensation
 State and federal governments have power
for eminent domain which is the power to
take property for public uses such as
schools or highways with just compensation

35. DISCRINIMATION
 Racial discrimination
 Gender: fewer benefits; differential
treatment; insurance benefits for costs
relating to pregnancy
 Illegitimacy of children
 Alienage: i.e. persons who are not citizens of
the US: they do not receive protection of all
constitutional guarantees

36. FREEDOM OF SPEECH
 1ST AMENDMENT provides freedom of
speech or of the press
 Defamatory words: words that harm a
person’s reputation
 No protection for obscenity/immorality
 Сommercial speech (advertising) is subject
to substantial regulation

37. COURTS , SOURCES OF
LAW AND LITIGATION
 “Equal justice under the law” is the
inscription on the front of the US Supreme
Court Building
 It is a reminder that the judicial system is
intended to protect the legal rights of those
who come before a court
 Managers should understand the judicial
system and be prepared to use it to protect
their rights and the rights of their
companies

38. THE COURTS SYSTEM
The Unites States has 2 co-existing judicial
systems:
 The Federal Courts – of limited subject
matter jurisdiction granted by the US
Constitution and federal law
 State Courts – handle the majority of legal
disputes in the US. The court system of each
state are created and governed by the
constitution of that state

39. THE FEDERAL COURTS
Federal Court System consists of:
 Trial courts (US District courts);
 Appellate courts (US Courts of Appeal);
 Specialized courts (e.g. US Tax Courts
and Patent Courts);
 US Supreme Court
Federal Courts Jurisdiction – federal
courts are courts of limited powers

41.  Jurisdiction The power of a court to hear
a case and render a binding decision
 original jurisdiction The power to
initially hear and decide (try) a case.
 appellate jurisdiction The power to
review a decision previously made by a
trial court.

42.  https://en.wikipedia.org/wiki/Judiciary_of_Azerbaij
an#Source_of_the_judicial_power_in_Azerbaijan
AZERBAIJAN JUDICIAL
SYSTEM