MGMT 211 Lecture 1 Outline of Current Lecture I. Chapter Onea. Introductionb. Definition of Lawc. Sources of Lawd. Classifications of LawII. Beginning overview of Chapter 2Current LectureI. Chapter Onea. Introductioni. What are the 2 major roles of law in the business world?1. Dispute resolution rolea. MAJOR; most focused on b. Settles differences between 2 more parties (civil cases; if one party sues another, etc.)2. Regulatory rolea. Even if you open your own business you aren’t really your own bossb. Government interference with private business; the government tells you what to doi. Creates a political argument1. Republicans want less government regulation2. Democrats want more government regulationc. The goal of government interference is to direct and standardize business activities in order to improve societyb. “Law” definitioni. Sort of grey area; an action may or may not be okii. Grey area makes it hard to define1. Abstract term2. Means different things to different people at different timesa. What you find to be acceptable may not be acceptable to another person, and vice versaiii. Best description: law- collection of rules deciding how the government will treat its citizens and how citizens will great the government and othercitizens, as well as enforcement of the rules1. Without enforcement, the law serves no purpose2. Enforcement (i.e. police) leads to a. Stability: if you have a break-in, you call the police, because you trust them to protect and defend youb. Predictability: while driving, you know where the cops are usually parked, and therefore, where it is important to go the speed limiti. Also predictable: bias1. Especially against young people: an officer ismore likely to ticket a college student than acollege professor2. Also: girls get away with more than guysc. Sources of Law- where did they come from?i. Constitutional Law1. The #1 source; if a law is not Constitutional, it cannot stand2. Therefore, it is the most important source of law3. “Supreme Law of the land”; if it is between federal and state law, the federal will win out 4. Derived from the U.S. Constitutionii. Legislative 1. “Statutory”: the laws written by the legislature (Congress)a. Example: what is murder? An exact definition is given2. Congress passes laws in accordance with the Constitution3. The Constitution gives Congress certain powersa. Called enumerated powers: basically, they are specific powersiii. Executive: aka President1. Executive orders: law by the residing President to control the policies of the executive brancha. Example: Lyndon Johnson-order 11246b. Controls federal and state agencies; therefore, it indirectly affects citizens (no direct effect)2. Power to vetoa. When a bill goes to the President for approval, he/she can either accept or reject iti. Example: George H.W. Bush, instead of veto-ing every bill created by his Democratic Congress, worked with them and compromised3. Controls executive branch agencies and bureausa. Oversees their spendingb. Appoints their leaders4. Appoints judgesa. Huge impact on a President’s legacy- judges serve a life termb. Approved by the Senatei. Court of public opinion-tool of minorities to persuade who is nominated and selectediv. Judiciary1. Introductiona. Interpretation of laws; can completely rewrite themb. Apply/enforce the lawc. Can create new lawi. Court cases2. Common Lawa. Based on the casesi. Cases are tried in appellate court, which creates precedence (predictability and stability)b. Not Statutory (not previously written down)c. Stare Decisis: follow previously decided cases, unless courts determine a good, legal reason to changei. They should, but don’t have tod. When courts follow stare decisis, it sets precedent3. Judicial Reviewa. Power of the Courts to declare an act of Congress/President unconstitutional or notb. Should a Supreme Court judge candidate claim to judiciallyactive or passive?i. Be passive, at least initially.ii. You won’t get voted in if you claim to be active; wait until after you’re voted iniii. Exceptions to being active1. Example: Chief Justice John Roberts, a conservative, voted in favor of liberal Obamacarea. Passive decision; abnormalc. Marbury v. Madison (1803): power of judicial review assumed by Supreme Courti. Feds.- Pro-Constitutionii. Anti-Feds.- Anti-Constitution1. Anti-Fed leader: Thomas Jefferson (huge voice)iii. Marbury appointed Justice of Peace during Adams’ term, was not re-given his appointment when Jefferson took officeiv. Marbury wanted commission documents; Sec. of State Madison refused; went to Supreme Court1. Justice John Marshall: Father of the Supreme Courta. Was Judiciary Act of 1789 (power to Supreme Court) constitutional?i. Not constitutional; gave more power to Courts than meant (beyond jurisdiction)ii. Therefore, Courts couldn’t force Madison to give up papersv. Gave Supreme Court HUGE power1. This is where judicial review was establishedd. Other examplesi. Nixon: when ordered to turn over Watergate tapes,he used his “Executive Privilege” and declined1. Court: “Executive Privilege” does not existii. Reagan: While at his 2nd Convention in Dallas1. Protestor burned American flag; arrested for violating a Texas law that prohibits it2. When it got to S.C., ruled unconstitutional for “being too restrictive” on 1st amendmentrights3. Case: Texas v. Johnson (1989)d. Classification of Lawsi. Federal vs. State1. Federal=national governmenta. “national courthouse”b. Constitution, Congress, President, Regulatory agencies create federal law2. State: vast amount done at this levela. Law varies from state to statei. Texas: Spanish lawii. Louisiana: French law1. Napoleonic Codeiii. Mississippi: English lawb. Attempt to make states more unifiedc. States: testing ground for national lawsi. If it works well in one state, national gov. will “steal” it and attempt to apply it to alld. Includes municipal ordinances, state legislators, state regulatory agencies, county governmentii. Public v. Private Law1. Public: the government is involveda. Example: Texas vs. You (court case)i. Also, College Station vs. You2. Private: between individuals; no government involvementiii. Criminal v. Civil law1. Criminal: always public in an effort to protect a. Purpose of criminal law: punishmentb. Law used is exclusively statutory2. Civil: government can be involved; not always public knowledgea. Purpose: reimburse those who have been wronged3. Same facts can give rise