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 Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning 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? Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning 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 Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning Slide 4 WHAT IS THE ORIGIN OF THE U.S. LEGAL SYSTEM? English common law 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 Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning Slide 5 On which early legal system is the U.S. legal system based? English Common Law Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning 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 Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning 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 Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning 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’ Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning 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) Law for Business and Personal Use 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 Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning Slide 11 What are the four sources of law? Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning Slide 12 WHAT HAPPENS WHEN LAWS CONFLICT? Constitutions and validity Statutes and validity Administrative regulations and validity Case law and validity Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning Slide 13 Which source of law in the United States is the highest authority? Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning Slide 14 WHAT ARE THE ‘General Categories’ OF LAWS? Civil and criminal laws Procedural and substantive laws Business law Uniform business laws Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning Slide 15 Compare and contrast criminal and civil law and substantive and procedural law. Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning 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 Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning Slide 17 ETHICS AND THE LAW Basic forms of ethical reasoning Consequences-based ethical reasoning Rule-based ethical reasoning Ethics reflected in laws Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning Slide 18 ETHICS AND THE LAW Consequences-based ethical reasoning Based on consequences of the action Rule-based ethical reasoning Based on ethical rules from an authority or some human philosophy Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning 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 Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning Slide 20 In the U.S. system of democracy, how are ethics reflected in laws? Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning 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. Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning Slide 22 With rights come duties Philosophical discussion Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning 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: 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. Law for Business and Personal Use Chapter 1 © South-Western, a part of Cengage Learning Slide 24