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
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 2
WHAT IS LAW?
 Stages in the growth of law
 Common law versus positive law
LAW for Business and Personal Use
Chapter 1
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 3
CHECKPOINT

 How does common law differ from positive
law?
LAW for Business and Personal Use
Chapter 1
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
 Equity: An alternative to common law
LAW for Business and Personal Use
Chapter 1
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 5
CHECKPOINT

 On which early legal system is the U.S. legal
system based?
LAW for Business and Personal Use
Chapter 1
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 7
WHAT ARE THE SOURCES
OF LAW?
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Constitutions
Statutes
Ordinances
Case law
Administrative law
LAW for Business and Personal Use
Chapter 1
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 8
CHECKPOINT

 What are the five sources of law?
LAW for Business and Personal Use
Chapter 1
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 9
WHAT HAPPENS WHEN LAWS
CONFLICT?
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Constitutions and validity
Statutes and validity
Administrative regulations and validity
Case law and validity
LAW for Business and Personal Use
Chapter 1
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 10
CHECKPOINT

 Which source of law in the United States is
the highest authority?
LAW for Business and Personal Use
Chapter 1
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 11
WHAT ARE THE MAIN
TYPES OF LAWS?
 Civil and criminal laws
 Procedural and substantive laws
 Business law
 Uniform business laws
LAW for Business and Personal Use
Chapter 1
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 12
CHECKPOINT

 Compare and contrast criminal and civil law
and substantive and procedural law.
LAW for Business and Personal Use
Chapter 1
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 13
TYPES OF LAW
Constitutional law
Based on constitutions
Statutory law
Enacted by legislative bodies
Administrative law Rules and regulations made 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 situations and
transactions
LAW for Business and Personal Use
Chapter 1
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 14
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
LAW for Business and Personal Use
Chapter 1
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 15
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
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 16
CHECKPOINT

 In the U.S. system of democracy, how are
ethics reflected in laws?
LAW for Business and Personal Use
Chapter 1
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 17
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
LAW for Business and Personal Use
Chapter 1
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 18
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.
LAW for Business and Personal Use
Chapter 1
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 19