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Chapter 1 laws & their ethical foundation improved
- 1. Law for Business and Personal Use © South-Western, a part of Cengage Learning What is Law? “……still need the same protection from the conduct of others.” From what type of behaviors do we still need to be protected? Slide 1 Chapter 1
- 2. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 2 Chapter 1 Chapter 1 Laws and Their Ethical Foundation 1-1 Laws and Legal Systems 1-2 Types of Laws 1-3 Ethical Bases for Laws
- 3. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 3 Chapter 1 1-1 Laws and Legal Systems GOALS ■ Explain the stages in the growth of law ■ Describe the differences between common law and positive law ■ Identify the origin of the U.S. legal system
- 4. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 4 Chapter 1 WHAT IS LAW? ■ Enforceable rules of conduct in a society ■ Reflects the culture & circumstances that create them ■ Laws grouped in an organized form are CODES Hammurabi, King of Babylon
- 5. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 5 Chapter 1 Stages in the Growth of Law ■ Individuals free to take revenge ■ Wild West, little kids, Gangs ■ Sovereign (Leader) acquires power……convinces the wronged to accept goods/money ■ Sovereign gives this power to a system of courts ■ Leader (central authority) acts to prevent/punish wrongs
- 6. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 6 Chapter 1 Stages in the Growth of Law “The more insecure the society the more severe the criminal punishment”
- 7. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 7 Chapter 1 Laws ■ Reflect the wisdom-or lack thereof-of their creators ■Laws should be both predictable and flexible. ■In what ways are the rules at CHS predictable/flexible?
- 8. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 8 Chapter 1 Laws
- 9. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 9 Chapter 1 Laws ■ What happens when a legal system is too controlling/rigid? ■ What is the best system of laws?
- 10. Law for Business and Personal Use © South-Western, a part of Cengage Learning WHAT IS LAW? Common Law ■ Based on current standards & customs ■ Evolves slowly, appropriate to current standards of the people Positive Law ■ Set forth by sovereign or other central authority to PREVENT disputes in the first place Slide 10 Chapter 1
- 11. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 11 Chapter 1 WHAT IS THE ORIGIN OF THE U.S. LEGAL SYSTEM? ■ Louisiana, Anyone? ■ ROMAN CIVIL LAW ■ Comprehensive codes ■ Only changed by central government ■ Judges must enforce them, not change them
- 12. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 12 Chapter 1 WHAT IS THE ORIGIN OF THE U.S. LEGAL SYSTEM? ■ The rest of the U.S. uses….Anyone? ■ ENGLISH COMMON LAW ■ In the beginning……. ■ Feudal barons settled disputes…. ■ ……problems with this?
- 13. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 13 Chapter 1 WHAT IS THE ORIGIN OF THE U.S. LEGAL SYSTEM? ■ ENGLISH COMMON LAW ■ Then……. ■ King’s (Queen’s) Bench Created ■ Good Weather? ■ Bad Weather? ■ Jurisdiction – Power to decide a case ■ Jury – to respect local customs/standards -- used local citizens King Henry II
- 14. Law for Business and Personal Use © South-Western, a part of Cengage Learning Tell Me About Gwen and William….. Ruling? Williams reaction? Then what? Slide 14 Chapter 1
- 15. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 15 Chapter 1 English Common Law ■ Advantages? ■ Uniform, common laws, stability ■ Precedents – use prior case law as guide to settle current case ■ Disadvantages? ■ Rigid adherence ■ Only remedy of damages – harm must be done before action taken
- 16. Law for Business and Personal Use © South-Western, a part of Cengage Learning Courts of Equity ■ Originally only available to who? ■ Addresses a major problem w/ Courts of Law ■ Do not have to suffer damages ■ Injunction ■ Can also COMPEL specific actions ■ US courts have merged the two
- 17. Law for Business and Personal Use © South-Western, a part of Cengage Learning Comparison of Courts Court of Laws ■ Provides monetary damages when that will repair wrong created by defendant ■ Everything not covered in C.O.E. ■ Jury Court of Equity ■ Provides fairness & justice when money will not fix problem ■ Family Law ■ Probate ■ Trusts ■ Specific performance ■ No Jury ❑ Legal Focus Page 16
- 18. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 18 Chapter 1 Equity Equity = Fairness Use precedent cases for application of the law fairly. Fairness ≠ Same
- 19. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 19 Chapter 1 ■ Page 9, End of section 1-1 ■ In Google Classroom or on paper ■ Must use complete sentences for questions 6-9 EXPLAINING why you answered the way you did. Homework
- 20. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 20 Chapter 1 1-2 Types of Laws GOALS ■ Identify the four sources of law ■ Discuss how conflicts between laws are resolved ■ Compare and contrast criminal and civil law, and substantive and procedural law
- 21. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 21 Chapter 1 WHAT ARE THE SOURCES OF LAW? ■ Constitutions ■ Statutes ■ Case law ■ Administrative law
- 22. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 22 Chapter 1 WHAT ARE THE LEVELS OF GOVERNMENT? ■ Federal ■ State ■ Local All create laws, but who has supremacy?
- 23. Law for Business and Personal Use © South-Western, a part of Cengage Learning Minimum Wage For instance: federal minimum wage is $7.25. Georgia state is $5.15. Washington state is $11.50 Ohio state is $8.30 Dist of Columbia is $13.25 Wyoming state is $5.15 Slide 23 Chapter 1 NEW YORK IS…. $10.40
- 24. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 24 Chapter 1 Constitutions ■ Supreme Law of the Land ■ Creates framework and relationship to the people ■ U.S. Constitution and state constitutions apply concurrently ■ Which is superior?
- 25. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 25 Chapter 1 Constitutional Law ■ Highest source of law ■ Adopted ■ Amended ■ Interpreted (courts) ■ U.S. Supreme Court is final interpreter ■ All laws must be in line with Federal Constitution
- 26. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 26 Chapter 1 Allocation of Power….. ■ Between people and their government ■ Bill Of Rights (1st Ten Amendments) ■ What does this protect you from? ■ Between Federal and State Governments ■ Example: Commerce ■ Foreign & INTERstate = Federal ■ INTRAstate = State ■ Among Branches of Government ■ System of Checks and Balances
- 27. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 27 Chapter 1 Statutes ■ Laws enacted by legislative branches of state and federal (Congress) ■ Inferior to the U.S. Constitution ■ Elected officials represent the citizens ■ Local governments create ordinances that effect their communities
- 28. Law for Business and Personal Use © South-Western, a part of Cengage Learning Just a Bill… Slide 28 Chapter 1
- 29. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 29 Chapter 1 Case Law ■ Laws enacted by judicial branches ■ Trial ended and appeals exhausted ■ Stare Decisis – “Let it Stand” ■ Important Because: ■ Don’t Start from scratch ■ Biases have less chance to interfere ■ Makes system more efficient ■ More stability Who is not bound by Stare Decisis? (SC)
- 30. Law for Business and Personal Use © South-Western, a part of Cengage Learning Precedents ■ Why Overturn? ■ Reasoning No Longer Valid ■ Publicity ■ School Prayer ■ Women in certain occupations ■ Segregation ■ Speed Limit Restrictions
- 31. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 31 Chapter 1 Administrative Law ■ Created by Legislature, controlled by Executive Branch ■ Rules and regulations made by appropriately empowered Administrative Agencies ■ Legislative Powers – create rules/regs ■ Judicial Powers – hold hearings
- 32. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 32 Chapter 1 What are the four sources of law?
- 33. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 33 Chapter 1 What Happens When Laws Conflict? What source of law is the highest authority?
- 34. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 34 Chapter 1 What Happens When Laws Conflict? ■ Constitutional Validity ■ Unconstitutional means what? ■ Is the U.S. Supreme Court the ultimate authority? ■ Statute and Administrate Validity ■ Constitutional? ■ Does law exceed scope of power? ■ Case Law and Validity ■ Legislative body can nullify courts interpretation by rewriting statute
- 35. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 35 Chapter 1 Which source of law in the United States is the highest authority?
- 36. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 36 Chapter 1 WHAT ARE THE MAIN TYPES OF LAWS? ■ Civil and criminal laws ■ Procedural and substantive laws ■ Business law ■ Uniform business laws
- 37. Law for Business and Personal Use © South-Western, a part of Cengage Learning CIVIL LAW ■ Wrongs against individuals ■ Police do not take action ■ Seek remedy for wrongs done ■ Wrongs against society ■ Gov’t investigates/ prosecutes ■ Conviction results in fines/ imprisonment/ execution Slide 37 Chapter 1 CRIMINAL LAW TORTS
- 38. Law for Business and Personal Use © South-Western, a part of Cengage Learning CIVIL LAW ■ Wrongs against individuals ■ Police do not take action ■ Seek remedy for wrongs done Slide 38 Chapter 1 TORTS Damage, injury, or a wrongful act done willfully, negligently, or in circumstances involving strict liability, but not involving breach of contract, for which a civil suit can be brought.
- 39. Law for Business and Personal Use © South-Western, a part of Cengage Learning Some actions are both civil & criminal Bill takes a watch from a counter display in a retail store and leaves the store without paying for it. A security guard gives chase and bumps into a pedestrian injuring her. Bill jumps into a stranger’s car, pulls a knife and orders her to help him escape. As they attempt to leave she hits a pedestrian and then a parked car. The guard catches up and pulls Bill out. Bill slashes the guard’s arm with his knife; takes off running….. Slide 39 Chapter 1
- 40. Law for Business and Personal Use © South-Western, a part of Cengage Learning PROCEDURAL ■ How legal rights and responsibilities must be exercised in the legal system ■ What remedies are allowed ■ Criminal Procedures? ■ Civil Procedures? ■ Defines legal rights and duties ■ Defines crimes ■ What is the difference between assault and battery? Slide 40 Chapter 1 SUBSTANTIVE
- 41. Law for Business and Personal Use © South-Western, a part of Cengage Learning Procedure Law ■ Procedural law issues are argued by the attorney before a judge rather than before a jury. The judge will decide procedural issues because they are questions of law. ■ Evidence issues such as hearsay ■ “Objection your honor”. “On what grounds?” ■ Failure to follow proper procedure can cause an otherwise winning case to be lost. Slide 41 Chapter 1
- 42. Law for Business and Personal Use © South-Western, a part of Cengage Learning Substantive Law Substantive law defines duties, establishes rights, and prohibits wrongs. It is concerned with all rules of conduct. The law against taking another’s life is a part of substantive law. The law protecting you from discrimination in housing, schooling and the like is part of substantive law. 1. Murder 2. Theft 3. Breach of contract 4. Negligence Slide 42 Chapter 1
- 43. Law for Business and Personal Use © South-Western, a part of Cengage Learning Business Law ■ Covers rules that apply to business situations and transactions. ■ Mostly Civil law ■ Contracts (Breach) ■ Commercial torts ■ Cease & Desist Gator Mascot ■ Criminal law for business activities ■ Bernie Madoff ■ Enron ■ Martha Stewart Slide 43 Chapter 1
- 44. Law for Business and Personal Use © South-Western, a part of Cengage Learning The Uniform Commercial Code - UCC ■ A uniform law enacted in part by all fifty states to create certainty in the area of commercial contracts and to make the law consistent with common business practice. ■ Is this good? Why? ■ Makes doing business easier ■ Uniformity
- 45. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 45 Chapter 1 TYPES OF LAW Constitutional law Based on constitutions Statutory law Enacted by legislative bodies Administrative law Rule-makings by administrative agencies Civil law Addresses wrongs done to individuals Criminal law Addresses wrongs done to society Procedural law Deals with methods of enforcing legal rights and duties Substantive law Defines legal rights and duties Business law Rules that apply to business transactions
- 46. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 46 Chapter 1 1-3 Ethical Bases for Laws GOALS ■ Define ethics ■ Compare and contrast consequences-based ethics with rule-based ethics ■ Discuss ways in which ethics are reflected in laws
- 47. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 47 Chapter 1 ETHICS is a decision…… .....Of right or wrong ■ Affects you or others …..Is reasoned ■ Not emotion ■ May use established authority as source ■ The Law ■ Religious texts …..Is impartial ■ Applies to everyone
- 48. Law for Business and Personal Use © South-Western, a part of Cengage Learning Consequences-based ethical reasoning ■ Rightness or wrongness is based only on the results of the action. Particular acts have no ethical, or moral, character. ■ It was right to do that, because I didn’t get caught. ■ I did it because I was financially rewarded. ■ I did it for justice. Slide 48 Chapter 1 What is a major consideration in this reasoning process?
- 49. Law for Business and Personal Use © South-Western, a part of Cengage Learning Rule-based ethical reasoning ■ Acts are judged to be either right or wrong. ■ Example anyone? ■ What are the STANDARDS FOR JUDGING based on? 1. A recognized authority ■ Frequently a religious source (ten commandments) 2. Human reasoning ■ Universalizing – what if everyone was doing this? Slide 49 Chapter 1
- 50. Law for Business and Personal Use © South-Western, a part of Cengage Learning Real World Business ■ Enron Corporation employed approximately 22,000 people ■ One of the world's leading electricity, natural gas, pulp and paper, and communications companies ■ Claimed revenues of $111 billion in 2000. ■ Offshore accounts were hiding losses for the company which the Executives and insiders at Enron knew about and the investors (stock holders) knew nothing about. Slide 50 Chapter 1
- 51. Law for Business and Personal Use © South-Western, a part of Cengage Learning Real World Business ■ In 2001 it was revealed that their accounting firm, Arthur Anderson, was practicing irregular accounting. ■ Enron was on the verge of bankruptcy ■ Enron shares dropped from over $90.00 to less than 50¢ ■ Arthur Anderson, one of the world's top five accounting firms was dissolved. Slide 51 Chapter 1 Video
- 52. Law for Business and Personal Use © South-Western, a part of Cengage Learning Ethics Reflected in Laws ■ Both ethics based on consequences and ethics based on rules conclude that we are obligated to obey the law. ■ Consequence based reasoning usually results in more people being injured than are benefited. ■ Rule based reasoning, if we break the rule, we are breaking our promise to obey the rules, usually affects one person. Slide 52 Chapter 1
- 53. Law for Business and Personal Use © South-Western, a part of Cengage Learning Ethics Reflected in Laws ■ MAJORITY RULE! (consequence-based) ■ To be re-elected, representatives need to vote for the majority opinion of their people ■ PROTECT WELL-BEING OF MINORITIES (rule-based) ■ Individual rights preserved by the Bill of Rights Slide 53 Chapter 1
- 54. Law for Business and Personal Use © South-Western, a part of Cengage Learning What are SCOFFLAWS? Slide 54 Chapter 1 Are YOU a Scofflaw?
- 55. Law for Business and Personal Use © South-Western, a part of Cengage Learning Tell me about Dr. Martin Luther King, Jr. Slide 55 Chapter 1 VIDEO
- 56. Law for Business and Personal Use © South-Western, a part of Cengage Learning Civil Disobedience ■ When is Civil disobedience ethical ? ● A written law is in conflict with ethical reasoning ● No effective political methods are available to change the law ● The civil disobedience is nonviolent ● The civil disobedience does not advance a person’s immediate self-interest ● The civil disobedience is public and one willingly accepts the punishment for violating the law Slide 56 Chapter 1
- 57. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 57 Chapter 1 PREVENT LEGAL DIFFICULTIES As a citizen . . . ■ When moving to a new location, find out how the laws in that county or city may affect you. ■ Before beginning a new business, consult an attorney to learn about city, county, state, and federal laws and how they may affect you. ■ Study business law so you can become an informed citizen who is knowledgeable about legal matters. Continued on the next slide
- 58. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 58 Chapter 1 PREVENT LEGAL DIFFICULTIES ■ Recognize that fulfilling your duties as a citizen is the greatest guarantee of your maintaining your individual rights and liberties. These duties include: ■ The duty to obey the law. ■ The duty to respect the rights of others. ■ The duty to inform yourself on political issues. ■ The duty to vote in elections. ■ The duty to serve on juries if called. ■ The duty to serve and defend your country. ■ The duty to assist agencies of law enforcement.
- 59. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 59 Chapter 1 WHAT IS THE ORIGIN OF THE U.S. LEGAL SYSTEM? ■ English common law ■ King’s Bench ■ Jury ■ An example ■ Advantages of English common law ■ Equity: An alternative to common law
- 60. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 60 Chapter 1 Compare and contrast criminal and civil law and substantive and procedural law.
- 61. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 61 Chapter 1 In the U.S. system of democracy, how are ethics reflected in laws?
- 62. Law for Business and Personal Use © South-Western, a part of Cengage Learning Slide 62 Chapter 1 How does common law differ from positive law?