Chapter 1 PowerPoint Slides

Chapter Overview

• BUSINESS LAW Today: Standard edition textbook by Roger LeRoy Miller, 12th Edition.

• Publication Information: © 2020 Cengage. Content protected against unauthorized reproduction.

Chapter Outline

1-1 Business Activities and the Legal Environment

1-2 Sources of American Law

1-3 The Common Law

1-4 Classifications of Law

Learning Objectives

• Identify four primary sources of law in the United States.

• Understand what precedent is and when a court may depart from it.

• Compare and contrast remedies at law with remedies in equity.

• Differentiate between civil law and criminal law.

The Legal System Basics

• Overview of the legal framework affecting business.

1-1 Business Activities and the Legal Environment

Liability

• Liability: Being legally responsible for obligations and debts.

1-1a Impact of Different Laws

• Various laws affect single business transactions such as contracts and sales.

1-1b Business Law and Functional Fields

• Link to six functional fields of business:

  • Corporate management

  • Production and transportation

  • Marketing

  • Research and development

  • Accounting and finance

  • Human resource management

1-2 Sources of American Law

Primary vs. Secondary Law

• Primary source: Establishes laws (constitutions, statutes, etc.)

• Secondary source: Summarizes or interprets laws (legal encyclopedias, articles).

1-2a Constitutional Law

• Derived from the U.S. Constitution; state constitutions also play significant roles.

1-2b Statutory Law

• Enacted by legislatures; distinguishes between federal, state, and local laws.

1-2c Administrative Law

• Rules from federal and state agencies; encompasses rulemaking & enforcement.

1-2d Case Law and Common Law Doctrines

• Law developed through court decisions and past rulings.

1-3 The Common Law

1-3a Historical Context

• Established by king’s courts after 1066; used precedent in decision-making.

1-3b Stare Decisis

• Doctrine requiring judges to follow established precedents.

• Controlling Precedents: Binding authority in lower courts.

Case Example Analysis

• Brown v. Board of Education (1954) overturned previous precedent.

1-3c Equitable Remedies

• Remedy: Relief to an innocent party; includes law (monetary damages) and equity (specific actions).

1-3d Schools of Legal Thought

• Natural Law: Reflects universal moral principles.

• Legal Positivism: Focus on laws created by government; morality irrelevant.

• Historical School: Basis for current law lies in historical precedent.

• Legal Realism: Consider social contexts in legal decisions.

1-4 Classifications of Law

1-4a Civil vs. Criminal Law

• Civil Law: Deals with disputes between private parties.

• Criminal Law: Defines crimes and punishes defendants on behalf of the state.

1-4b National vs. International Law

• National Law: Governs within a nation.

• International Law: Governs relations among nations.

Appendix to Chapter 1

Finding and Analyzing the Law

• Statutory Law: U.S. Code, state codes, admin rules.

• Case Law: State court decisions and case citations.

Reading and Understanding Case Law

• Important cases and terms, including parties involved and judiciary language.