Unit A
Business Law
Essential Standard 1.00
Understand concepts of the legal system,
trial procedures, and ethics.
Objective 1.01
Understand ethics, origins, and
structure of the legal system
Ethics
Ethics
• Rules used to determine the difference between right and
wrong in a reasoned, impartial manner
• To involve ethics, a decision must affect you or others in some
significant way
3 Elements
1.
2.
3.
Decision about right or wrong action
Decision is reasoned
Decision is impartial
Decision about Right or Wrong Action
• Decision to buy blue jeans with wide pant legs or
narrow pant legs?
– Ethical component?
• Decision to discontinue medical support for an
unconscious, terminally ill relative.
– Ethical component?
• Many decisions have little effect on other persons or
yourself
• To involve ethics, a decision must affect you or others
in some significant way
Reasoned Decisions
• Ethical decisions must be based on reason, not our
emotions
• Usually refer to a written authority that provides
consistency
– Law
– Religious texts
Impartial Decisions
• Impartiality
– The idea that the same ethical standards are applies to
everyone
• Ethics does not value one person or group of persons
more than any other does
– Men vs. Women
• Each person is an individual and should receive equal
respect and consideration from others
Impartial Decisions
• It requires us to make ethical decisions while we balance
our self-interest with the interest of others
• If you hit someone’s car and no one sees you, is it ethical
not to report it?
– Who is affected?
• Particularly important when organizations and
institutions are involved
– “It was only the school’s property”
– “Just the insurance company was cheated”
– Consider how the people behind the institution are
affected by the action
Origins of Ethics
Greatest Good
• Examines whether the action will cause the greatest
good for the greatest number of people
The Golden Rule
• “Do unto others as you would have them do unto
you”
Ethical Reasoning
Consequential Ethical Reasoning
• alternative ways to change the current situation
• evaluates each alternative
• generates the greatest good
Rule Based Ethical Reasoning
• fundamental ethical rule
• either a recognized authority or human reasoning
• acts themselves are judged as right or wrong
Ethics as Reflected in U. S. Laws and the U. S. Constitution
• laws are judged to be right or good when they affect the
majority of the people in a positive manner.
Based on Consequences
• Rightness or wrongness is based only on the
results of the action
• Particular acts have no ethical, or moral
character
• A good act = good consequences
• A bad act = bad consequences
Based on Ethical Rules
• Acts are either right or wrong
– Truth = right
– Lying = wrong
• Good consequences do not justify wrong or
bad acts
– Can’t justify lying even if it has good
consequences
Business Ethics
• The ethical principles used in making business
decisions
• Too often, ethics are not considered when
business decisions are made
• Why? PROFIT MAXIMIZATION
• Move factories offshore and cut jobs to reduce
costs
– Increase profits for the business owners
• The profit maximization ethic will need to be
replaced by the more humane ethical standards
Sources of Law
The Constitution
• Principles by which its government operates
• Adopted and amended
• Constitutional law is made when the court interprets it
U. S. Constitution
• Main instrument for allocating powers between the people and
their governments.
–Bill of Rights.
State Constitution-Sovereignty
• US Constitution allocated power between the federal and state
governments
• Tenth Amendment acknowledges sovereignty for all states to
govern their citizens with their respective borders.
Constitutional Law
• The US Constitution is the supreme law of
land.
– Any state or local law that conflicts with the US
Constitution is unconstitutional.
– If unconstitutional, then law is null and void.
• The Supremacy Clause, US Constitution
Article VI
Who has supremacy?
• A higher court prevails over any lower court
decisions.
• A federal law prevails over state laws.
• State law prevails over municipal (town or
city) ordinances.
• Supreme Court determines questions of
constitutionality.
Sources of Law
English Common Law
• Result of custom-based laws being unified by system of
appellate courts in England.
• Colonists brought English Common Law doctrines with them to
America
• Primary basis of American legal system
Statutory Law
• Act of a legislature that declares, prescribes, or
commands something
• Specific law, expressed in writing.
• Local statutes or laws are usually called "ordinances.“
Sources of Law
Statutory Law
• All statutes
– Are subject to review by judicial system
– Must be constitutional - cannot conflict with the United States
Constitution
Judicial Review
• Precedent set by Marbury vs. Madison, 1803, gave court
system the right to:
– Review lower court decisions
– Review statutory laws
– Review Executive Branch
Sources of Law
Case Law
• Based on an appealed cases
• Appellate court issues a ruling based on their decision
• New rules in deciding the appealed case
• Sets precedence for similar future cases.
• Law of precedent
• Also called the Doctrine of stare decisis
– Latin for “Let the decision stand”
Administrative Law
• Body of rules created by government agencies.
– (Ex. Federal Communications Commission)
Administrative Law
• Administrative law is the regulations, orders,
rules and decisions of administrative agencies.
• Legislators create an administrative or
regulatory agency.
• Purpose is to regulate certain activities for the
benefit of the public.
Administrative (Regulatory) Agencies
• Have the power to:
– Make rules
– Enforce rules
– Investigate violations
– Decide guilt or innocence of violators
– Penalize those convicted
– Order actions to stop
Administrative Agencies
• Are set up when expert knowledge is needed
• Have a limited scope of power
• Are subject to judicial review by the court
system
The United States Legal System
A System of Checks and Balances
This system was set up to ensure that no single branch exceeded it’s authority
when making laws, statutes or decisions that may be in violation of the U. S.
Constitution.
Legislative Branch
• Consists of the U. S. Senate and the U. S. House of Representatives.
Executive Branch
• Consists of the President and the Vice President, of the United States.
Judicial Branch
• Consists of the U. S. Supreme Court
• Decides on the constitutionality of any statute passed by the legislative
branch.
• May decide if an action or decision by the Executive branch exceeds the
powers granted under the Constitution. If so, this action or decision is void.
Law Enforcement - Federal and State
Federal Law Enforcement Agencies
Federal Bureau of Investigation (FBI)
• Mission is to uphold the law through the investigation of violations of federal
criminal statutes.
• Divided into five functional areas:
–Criminal Law Enforcement
–Foreign Counterintelligence
–Investigative and Operational Support
–Law Enforcement Services
–Direction, Control, and Administration
United States Marshal Service
• Apprehend federal fugitives
• Protect the federal judiciary
• Operate the Witness Security Program
• Transport federal prisoners
• Seize property acquired by criminals through illegal activities.
Federal Agencies
Drug Enforcement Agency (DEA)
• Enforce the controlled substances laws and regulations of the United States
• Bring to the criminal and civil justice system, those organizations and
principal members of organizations, involved in the growing, manufacture, or
distribution of controlled substances appearing in or destined for illicit traffic
in the United States.
Department of Homeland Security
•Mission is to:
– Prevent terrorist attacks within the United States
– Reduce the vulnerability of the United States to terrorism
– Minimize the damage, and assist in the recovery, from terrorist attacks
that do occur within the United States.
State and Local Agencies
North Carolina State Bureau of Investigation (SBI)
• Division of the N.C. Department of Justice
• Assists local law enforcement with criminal investigations
•The SBI has statewide jurisdiction and investigates homicides, robberies,
property crimes, and other serious cases. Involvement is at the request of the
local department that maintains original jurisdiction over the case.
• The SBI has original jurisdiction in these areas:
– Drug Investigations
– Arson Investigations
– Election Law Violations
– Child Sexual Abuse in Day Care Centers
– Theft and Misuse of State Property
– Computer Crime Investigations that Involve Crimes Against Children
State and Local Agencies
North Carolina State Highway Patrol
• Reduce collisions and make the highways as safe as possible
• Active patrol and enforcement of N. C. State statutes and laws for motor vehicle
operation
N.C. Sheriff Departments (by county or jurisdiction)
• Responsible for the courts of the State
–acting as their bailiff and marshal
• Administers and executes criminal and civil justice and acts as the ex officio
(implied) detention officer for the jail.
Police Departments (local)
• Within the corporate limits of their city or jurisdiction and one mile outside
these limits
• Same powers that are vested to all officers by statute and common law, to
enforce the laws and statutes of the state of N. C.