Ch01

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Chapter 1
Laws and Their
Ethical Foundation
1-1
1-2
1-3
Laws and Legal Systems
Types of Laws
Ethical Bases for Laws
Law for Business and Personal Use
Chapter 1
© South-Western, a part of Cengage Learning
Slide 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
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Slide 2
WHAT IS LAW?
 Stages in the growth of law
 Common law versus positive law
Have humans changed much over the last 4000 years?
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Slide 3
How does common law differ from
positive law?
Laws should be predictable and flexible
Laws should evolve toward current
standards or customs of the peoplecommon law
Some laws are written by a central authority
such as Congress- Codes or positive law
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Slide 4
WHAT IS THE ORIGIN OF THE U.S.
LEGAL SYSTEM?
 English common law
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King’s Bench
Jury
An example
Advantages of English common law
 Uniform
 Ability to adapt to societal changes
 Equity: An alternative to common law
 Arkansas, Delaware, Mississippi, Tennessee
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Slide 5
On which early legal system is the U.S.
legal system based?
English Common Law
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Slide 6
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
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Slide 7
WHAT ARE THE SOURCES
OF LAW?
 Constitutions- sets up the framework of
government and the relationship to the people
 Between people and their government
 Between state and federal government
 Among the branches of government
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Slide 8
WHAT ARE THE SOURCES
OF LAW?
 Statutes – Laws enacted by legislative
branches of government; inferior to US
Constitution
 The federal constitution created Congress
 State constitutions create state legislatures
 Legislatures enact laws called ‘statutes’
 Local legislative bodies enact ‘ordinances’
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Slide 9
WHAT ARE THE SOURCES
OF LAW?
 Case law- the judicial branch creates case
law
 Based on appeals to a court case decision, the
higher court opinion may define the rules further
or make new rules for similar cases.
 Case law arises out of the historical doctrine of
‘stare decisis’. (let the decision stand) In other
words, the case establishes ‘precedent’. Lower
courts must follow established case law in
deciding similar cases.
 Is not binding on the US Supreme Court
(read p.11 In this Case)
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Chapter 1
© South-Western, a part of Cengage Learning
Slide 10
WHAT ARE THE SOURCES
OF LAW?
 Administrative Law- legislatures create
agencies through laws.
 Agencies create laws called rules and
regulations
FDA
PADOT
Selinsgrove Planning
Commission
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Slide 11
What are the four sources of law?
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Slide 12
WHAT HAPPENS WHEN LAWS
CONFLICT?
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Constitutions and validity
Statutes and validity
Administrative regulations and validity
Case law and validity
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Slide 13
Which source of law in the United States is
the highest authority?
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Slide 14
WHAT ARE THE
‘General Categories’ OF LAWS?
 Civil and criminal laws
 Procedural and substantive laws
 Business law
 Uniform business laws
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Slide 15
Compare and contrast criminal and civil law
and substantive and procedural law.
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Slide 16
TYPES OF LAW
Constitutional law
Based on constitutions
Statutory law
Enacted by legislative bodies
Administrative law
Rule-making 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
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Slide 17
ETHICS AND THE LAW
 Basic forms of ethical reasoning
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Consequences-based ethical reasoning
Rule-based ethical reasoning
Ethics reflected in laws
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Slide 18
ETHICS AND THE LAW
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Consequences-based ethical reasoning
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Based on consequences of the action
Rule-based ethical reasoning
 Based on ethical rules from an authority or some human
philosophy
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Slide 19
ETHICS AND THE LAW
 Characteristics of ethical decisions
 Deciding right from wrong in a reasoned and impartial
manner
 The decision must affect you or others in a significant way
 Must be based on reason and not emotion
 The decision must be impartial
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Slide 20
In the U.S. system of democracy, how
are ethics reflected in laws?
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Slide 21
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.
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Slide 22
With rights come duties
 Philosophical discussion
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Slide 23
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:
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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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Slide 24
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