Slide 1Business Activities and the Legal EnvironmentExhibit 1.1: Areas of Law that Affect Business Decision-makingBusiness Activities and the Legal EnvironmentSlide 5Sources of American LawSources of American LawSources of American LawSources of American LawThe Common Law TraditionThe Common Law TraditionThe Common Law TraditionThe Common Law TraditionThe Common Law TraditionThe Common Law TraditionClassifications of LawClassifications of LawAppendix to Chapter 1Appendix to Chapter 1Exhibit 1A-1: West’s National Reporter SystemReading and Understanding Case LawReading and Understanding Case LawReading and Understanding Case Law© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.Business Law Today 10th Ed.Text and Summarized CasesDiverse, Ethical, Online and Global EnvironmentRoger LeRoy MillerGaylord JentzChapter 1: The Legal Environment of BusinessJustASC/Shutterstock.comBUSINESS ACTIVITIES AND THE LEGAL ENVIRONMENT•Many different laws affect a single business transaction. •Define Law: consists of enforceable rules governing the relationships among individuals and between individuals and scoiety© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.2EXHIBIT 1.1: AREAS OF LAW THAT AFFECT BUSINESS DECISION-MAKING© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.3BUSINESS ACTIVITIES AND THE LEGAL ENVIRONMENT•The Role of Law in Small Business•Identify legal issues, apply the laws you learn or seek assistance and reach a conclusion© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.4EXHIBIT 1.2: LINKING BUSINESS LAW TO MANAGEMENT OF SMALL BUSINESS© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.5SOURCES OF AMERICAN LAW•Primary v. Secondary Sources•Constitutional Law.Found in text and cases arising from federal and state constitutions.U.S. Constitution is the supreme law of the land.© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.6SOURCES OF AMERICAN LAW•Statutory Law.Laws enacted by federal and state legislatures.Local ordinances.Uniform Laws (e.g.,Uniform Commercial Code).© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.7SOURCES OF AMERICAN LAW•Administrative Law.Federal or State agencies established to perform a specific function.Rules, orders and decisions of Administrative Agencies© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.8SOURCES OF AMERICAN LAW•Case Law.Doctrines and Principles announced in casesJudge made lawInterprets statutes, regulations, constitutional provisions and other case law.© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.9THE COMMON LAW TRADITION•Early English Courts.King’s courts started after Norman conquest of 1066.Established the common law—body of general legal principles not attributable to a legislature King’s courts used precedent to build the common law.© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.10THE COMMON LAW TRADITION•Stare Decisis.Practice of deciding new cases based on precedent.A higher court’s decision based on certain facts and law, is a binding authority on lower courts.Helps courts stay efficient, stable and predictable. © 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.11THE COMMON LAW TRADITION•Stare Decisis.Stare Decisis and Legal Stability.Departures from Precedent.•Brown v. Board of Education (1954): The U.S. Supreme Court overturned precedent when it held that ‘separate but equal’ facilities was unconstitutional.What happens when you have a case of first impression? Persuasive AuthorityHow has the internet expanded precedent?© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.12THE COMMON LAW TRADITION•Equitable Remedies and Courts of Equity.Remedy: means to enforce a right or compensate for injury to that right.Remedies at Law: in king’s courts, remedies were restricted to damages in either money or property. © 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except