chapter 1 laws and their ethical foundation...law for business and personal use © south-western, a...

Law for Business and Personal Use

© South-Western, a part of Cengage Learning Slide 1

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



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



Chapter 1

WHAT IS LAW?

The first law code set down 4,000 years ago

is similar to that found in our current law

codes.

Why?

Enforceable rules of conduct in a society that

reflects the culture and circumstances that

create them.


© South-Western, a part of Cengage Learning

Stages in the Growth of Law

Individuals are free to take revenge for

wrongs done to them.

A leader acquires enough power to be able

to force revenge-minded individuals to

accept an award of goods or money instead.

The leader gives this power to a system of

courts.

The leader or central authority acts to

prevent and punish wrongs that provoke

individuals to seek revenge.

Slide 4

Chapter 1



Common Law vs. Positive Law

Common Law is based on the current

standards or customs of the people.

Usually formed from the rules used by judges to

settle people’s disputes

Positive Law are laws set down by a

sovereign or other central authority to

prevent disputes and wrongs from occurring

in the first place.

Slide 5

Chapter 1



Chapter 1

How does common law differ from

positive law?



Chapter 1

WHAT IS THE ORIGIN OF THE U.S.

LEGAL SYSTEM?

Read “What’s Your Verdict?” Pg. 6

Is LaBonne Correct?

Two great systems of Law

English Common Law

Roman Civil Law

Roman Civil Law

Adopted, written, well organized, comprehensive

set of statues in code form. Only changed by

central government, not by judges.



English Common Law

Slide 8

Chapter 1

Brought by colonist from England to the US

King’s Bench

Jury

An example p. 7

Advantages of English common law



Equity: An Alternative to Common

Law

Common Law courts follow precedent

Courts use prior cases as a guide for deciding

similar cases

Following precedent helps to provide stability in

the law

Slide 9

Chapter 1



Disadvantages of Early Common

Law

Rigid adherence to proper form

Courts could only grant damages

Inability to stop wrong before it caused damage

Nobles could go directly to the King (unequitable)

Slide 10

Chapter 1

King sensed a need for access to equitable remedies for

all citizens, so he created a system of equity courts.

In the US today, law courts and equity courts are

merged, except Delaware, Mississippi, and

Tennessee



Chapter 1

On which early legal system is the U.S.

legal system based?

Read “Cyber Law” on pg. 8 and

discuss



Assignment

Begin vocabulary word list for chapter 1 (Key

Terms on pg. 5)

Complete and turn in 1-1 Assessment (hand-

written)

Different Country’s Legal Systems:

See handout

Slide 12

Chapter 1



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



What’s Your Verdict

Read “What’s Your Verdict” on p. 10

What part of the US Constitution contains

most of these guarantees?

Bill of Rights

Slide 14

Chapter 1



Laws are created at all three levels of

government:

Federal

State

Local

Slide 15

Chapter 1



Chapter 1

WHAT ARE THE SOURCES

OF LAW?

Constitutions

Statutes

Case law

Administrative law



Constitution

A document that sets forth the framework of

a government and it’s relationship to the

people it governs.

Supreme law of the land

Creates governmental framework and

relationship to the people

US Constitution and state constitutions apply

concurrently

US Constitution superior to any and all state

constitutions

Slide 17

Chapter 1



US Constitution, Article VI

Constitutions are the highest sources of law,

and the federal Constitution is “the supreme

law of the land”

Any federal, state, or local law is not valid if it

conflicts with the federal Constitution.

Constitutions are concerned primarily with

defining and allocating certain powers in our

society

Slide 18

Chapter 1



Constitutions allocate powers:

Between people and their governments

Bill of Rights (First 10 amendments)

Between Federal and State Governments

Power to regulate both foreign and interstate

commerce

Among the branches of Government

Executive, Legislative and Judicial

Ensures that no branch becomes too powerful

Slide 19

Chapter 1



Statutes

State and federal legislatures are composed

of elected representatives of the people

Acting for their citizens, these legislatures enact

laws called statutes

Local governments also can create legislation on

matters. These pieces of legislation created by a

town or city are referred to as ordinances.

Slide 20

Chapter 1



Case Law

The judicial branches of governments create

case law.

Usually made after a trial has ended and one

of the parties has appealed the result to a

higher court.

The rules or opinions published by the

appellate court are then used in deciding

other cases like it.

Slide 21

Chapter 1



Administrative Law

Rules and regulations made by appropriately

empowered agencies (Administrative

Agencies)

Legislative branch delegates it power to

agencies

Rules have power of law

Slide 22

Chapter 1



Chapter 1

What are the four sources of law?



Chapter 1

WHAT HAPPENS WHEN LAWS

CONFLICT?

Read p. 12 “What happens when laws

conflict”

Legal Rules are used the determine which

statement of the law is superior

Constitutions and validity

Statutes and validity

Administrative regulations and validity

Case law and validity



Constitutions and Validity

Constitutions are the highest sources of the

law, and the federal Constitution is “the

supreme law of the land”.

If a local, state or federal statute conflicts with the

constitution, it is not valid (unconstitutional)

These can be appealed to the highest court.

The people have the power to amend

constitutions if they disagree with the courts

interpretation.

Slide 25

Chapter 1



Statutes and Validity

Must be constitutional to be valid

Slide 26

Chapter 1



Administrative Regulations and

Validity

Can also be reviewed by courts

Can be invalidated by courts

Slide 27

Chapter 1



Case Law and Validity

A legislative body has the power to nullify a

courts interpretation of a statute or ordinance

by rewriting the statute

Slide 28

Chapter 1



Chapter 1

Which source of law in the United States is

the highest authority?



Chapter 1

WHAT ARE THE MAIN

TYPES OF LAWS?

Read “What’s Your Verdict” p. 13

Civil and criminal laws

Is this Civil, Criminal or both?

Procedural and substantive laws

Business law

Mainly civil law

Uniform business laws

Uniform Commercial Code (UCC)



Chapter 1

Compare and contrast criminal and civil law

and substantive and procedural law.



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



Assignment

Complete Assessment 1-2 on p. 15

Questions 1-11

Slide 33

Chapter 1



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



Chapter 1

ETHICS AND THE LAW

What does Ethics mean?

(Focus)

Three elements of ethics

1. Decisions about right and wrong

2. Decision is reasoned (consistent and established)

3. Decision is impartial (fair)

An ethical decision is one that is reasoned out typically

by referring to an established authority that provides

consistency. (law is such an authority).



Ethics (Continued)

Ethic decisions should be impartial

Impartiality is the idea that the same ethical

standards are applied to everyone.

Business Ethics are the ethical principals

used in making business decisions

Often not considered in business decisions

(video)

Slide 36

Chapter 1



Forms of Ethical Reasoning

Read “In This Case” p. 16

Basic forms of ethical reasoning

Consequences-based ethical reasoning

Right or wrong is based on the results of the action

Rule-based ethical reasoning

Acts are either right or wrong (judging comes from an

authority [law] or human reasoning)

Slide 37

Chapter 1



What kinds of ethical decisions do

you have to make?

Give some examples

Apply consequence based reasoning and

rule based reasoning to each situation.

Compare the results

Is one superior to the other? Why?

Slide 38

Chapter 1



Ethics reflected in laws

Discuss “A Question of Ethics” p. 17

Representatives must vote for laws that are

acceptable to the majority of the people

(that’s how they get re-elected).

Laws are judged to be right or good when

they affect the majority of people positively

(Consequence Based Ethics)

“Provides the greatest good for the greatest

number”

Slide 39

Chapter 1



Ethics reflected in laws (continued)

Constitution also protects the well-being of

minority groups.

Done through the first 10 Amendments (Bill

of Rights) and other civil rights laws.

This reflects ethics based on rules.

Both consequence and rule based ethics

conclude that we are obligated to obey the

law.

Slide 40

Chapter 1



Breaking Laws

Even if unethical, it can be tempting

Some don’t even obey minor laws

Some assess the risk of being caught against the

benefits

Shows a lack personal integrity

Slide 41

Chapter 1



Civil Disobedience

Some care passionately about ethical

behavior, human rights, and justice

They participate in an open, peaceful,

violation of a law

Protest it’s injustice

Read “What’s Your Verdict” p. 16

Slide 42

Chapter 1



Dr King’s belief on Civil

Disobedience

He believed it’s ethical when:

The law is in conflict with ethical reasoning

No effective political methods are available to

change the law

It is nonviolent

Does not advance a persons immediate self-

interest

It’s public and one willingly accepts the

punishment for violating the law.

Slide 43

Chapter 1



Chapter 1

In the U.S. system of democracy, how

are ethics reflected in laws?

Reflected in the Constitution which is drawn

from the values of the people who elect the

majority of the legislatures making the rules

for our country.



Assignment

Ch 1-3 Assessment p. 19

Questions 1-9

Slide 45

Chapter 1



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



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.

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