For A-Plus Writer Only
patisa
powerpoint_chap_1_business_law.pptx
Business Law
Principles
and Practices 8e
Arnold J. Goldman William D. Sigismond
Chapter 1: Foundations of Law and the Role of Ethics in Business
Part I Objectives
After studying Part I, you should be able to:
1. Explain the term law.
2. Demonstrate a knowledge of the need for a legal system.
3. Trace the development of U.S. law from Roman law and the English common law.
4. Demonstrate a knowledge of the primary sources of law in the United States.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
2
Part I Objectives
5. Discuss the differences between civil law and criminal law.
6. Determine what is appropriate ethical behavior in a business environment.
7. Outline the structure of the federal and state court systems in the United States.
8. Distinguish between a private wrong and a public wrong.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3
Part I Objectives
9. Demonstrate a knowledge of legal wrongs, both criminal and civil.
10. Compare the procedures in a civil action and a criminal action.
11. Recall the steps taken in a lawsuit from start to finish.
12. Evaluate alternative ways to settle disputes between two or more parties other than by litigation (a lawsuit).
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4
Why Laws are Important
Without law, history shows society resorts to violence.
Without system of rules and regulations, society would break down and a primitive society would prevail.
5
The Nature of Law
Law can be defined as rules established and enforceable by a government—federal, state, or local—to regulate the conduct of individuals and groups in a society.
The rules that make up law are actually legal duties that are imposed on people and that require them to act in a certain way.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
6
Legitimate Functions of Law
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7
Legitimate Functions of Law
Settlement of Disputes.
Protection of the Individual and Society.
Protection of Property.
Promotion of Worthwhile Social Objectives.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
8
Development of Law
Roman Law:
Prior to Romans, most law was oral. The Romans developed the concept of written codes (or laws) that everyone could know and understand. The Roman Code was revised by Napoleon to create the Napoleonic Code, used today in Europe and many countries in Central and South America and Asia.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
9
Development of Law
Common Law:
Developed in England after the Norman conquest of 1066 A.D.
Refers to the body of legal decisions by English judges over many years, based on local customs and traditions.
Each new case served as a “precedent” for later decisions, which created the doctrine of “stare decisis” (stand by a decision previously decided”).
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
10
Sources of Law in the United States
Constitutions.
Statutes.
Court Decisions.
Administrative Regulations.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11
Civil Law vs. Criminal Law
Civil Laws:
Protect rights and property of individuals from harmful acts of others. The injured party (the Plaintiff) may be awarded money damages if he can prove his case by a preponderance of the evidence.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12
Civil Law vs. Criminal Law
Criminal Laws:
Protects society from acts of individuals that are considered so dangerous, or potentially so, that they threaten peace and order within a society.
A person accused of committing a crime is charged by government and, if convicted, will be punished by prison and fines if applicable.
Government must prove its case beyond a reasonable doubt and jury verdict must be unanimous.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
13
Civil vs. Criminal Law
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14
Law vs. Equity
In a civil case, money is not always a suitable or adequate remedy for violation of certain rights.
In such cases, equitable (nonmonetary) relief is available, based on fairness and justice.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
15
Law vs. Equity
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
16
Uniform Laws
Much of our business law developed from early English merchants courts, called “law merchant” which became a part of the common law, passed to the United States.
Uniform Commercial Codes are an example of the updated merchant code.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
17
Impact of Unethical Behavior in the Workplace
Business Ethics:
Moral judgments people make based on what is right, just, and fair.
Historically, business owners only considered what was “legal.” Now business owners act based on human experiences, religious upbringing, and family customs, and traditions.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
18
Impact of Unethical Behavior in the Workplace
Role of Ethics in Business Settings:
Generally, the primary goal of businesses is to be profitable, to survive. However, there can be ethical conflicts when profitability is the ONLY goal in business.
Studies show, consumers will switch brands if they perceive a business is acting unethically. Court challenges and government intervention is also possible.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
19
Ethical Challenges in the Workplace
Role of Managers: personal example.
Ethical Issues Faces by Managers.
Invasion of Privacy.
Restrictions on Employees Under Contract.
Sexual Harassment on the Job.
Sphere of Influence.
Management Style.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
20
Ethical Challenges in the Workplace
Building Sound Ethical Practices.
Develop an Ethical Vision for the company.
How Does Company Vision match Employees’ Vision?
Reconcile Company’s Vision with Employees’.
Implement (and Enforce) Code of Ethics.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
21
Ethical Challenges in the Workplace
Development of Business Codes of Ethics.
Code of Ethics: rules or standards that establish a framework for professional behavior and responsibilities within a company setting.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
22
Ethical Challenges in the Workplace
Development of Business Codes of Ethics.
Code of Ethics: Managers and officers must act with honesty and integrity in all matters within the company and outside the company wherever business is conducted.
Ethical Codes of Conduct must be clearly written with mandatory training for employees.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
23
Ethical Challenges in the Workplace
Role of the Legal System in Ethical Disputes.
Some behavior is purely ‘unethical’ and therefore not actionable under civil or criminal statutes.
Other actions may be severe enough to warrant criminal prosecutions and civil lawsuits, including punitive damages.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
24
