Chapter one: Business and its legal environment
Limitation of law
a. The law does not and cannot codify all ethical requirements
b. An action is legal does not make it ethical
c. So many laws, can violate without knowing
d. “Gray area” make it difficult to determine what is “foreseeable”,” reasonable”
Ethics: study of right and wrong behavior
Business ethics: study of right and wrong behavior in the business world
Moral minimum: the minimum acceptable standard for ethical business behavior, normally considered compliance with the law
Corporate Social Responsibility (CSR): the idea that corporations should be accountable to society for their actions
Duty-based(relevant rules), Outcome-based(potential consequences), Character-based (say about the character)
Law: establish rights, duties, privileges that are consistent with the values and beliefs of a society or its ruling group.
Source of American law
The U.S. Constitution and the constitution of the various states
Status, or laws, passed by Congress and by state legislatures
Regulation created by administration agencies
Case law (Court decision)
Secondary source of law: books and articles that clarify the primary source of law
Restatement of the law (court decision on a particular topic)
Official comments to statutes,
Law review published by law school
Law to the management of a small business
Business Organization (form) → Taxation → Intellectual Property→ Admin. Law →Employment →Contract, Sales, and leases →Accounting →Finance
Constitutional Law: Derived from the U.S. Constitution and the constitution of the various states
U.S. Constitution is the supreme law, reserves to the states all power, not to the federal government, unless it conflicts within U.S. Constitution or a federal law, a state constitution is supreme within the state’s borders.
Statutory Law: law enacted by legislative bodies at any level of Gov., such as by Congress or state legislatures
Ordinances-statutes (city or county land) passed by municipal or county governing units not covered by federal and state law
Federal statues applies all states
State statutes applies only within the state’s borders
Uniform Laws is a model states created by NCCUSL on uniform state laws and American law institute for the states to consider adopting.
The Uniform Commercial code, UCC facilitates commerce among the states by providing a uniform, set of rules governing commercial transactions
Administrative Law is another source of American law, administrative agency is a federal, state, or local government agency established to perform a specific function. Business operation affection
Case Law: the rules of law announced in court decision
Common Law: the body of law developed from judicial decision in English and U.S. court.
Precedent: a court decision that furnishes an example or authority for deciding subsequent cases involving identical or similar facts.
Departure from precedent when incorrect, or technological or social changes have rendered the precedent inapplicable
When No precedent, refer to the persuasive authority (legal authority or source of law the court may look to for guidance but not rely in making its decision)
Stare Decisis: a common law doctrine under which judges are obligated to follow the precedent established in prior decision.
Helped court to be more efficient
Binding authority (constitution, statues, and regulation that govern the issue being decide): any source of law that a court must follow when deciding a case.
Remedy: relief given to an innocent party to enforce a right or compensate for the violate of a right. No remedy, No right.
Chapter 2: The courts and alternative dispute resolution
Judicial review: decide on the constitutionality of legislative enactments and actions of the executive branch.
Jurisdiction: the authority of court to hear and decide a case.
1. Rem jurisdiction: jurisdiction over a thing (property).
2. Long arm statutes: state exercise personal