Chapter 1: Legal Heritage and The Digital AgeWhat is Law?- Law consists of rules that regulate the conduct of individuals, businesses, and other organizations within society. It is intended to protect persons and their property from unwanted interference from others.-Functions of Law include: 1. Keeping the Peace 2. Shaping moral standards 3. Promoting social justice 4. Maintaining the status quo 5. Facilitating orderly change 6. Facilitating planning 7. Providing a basis for compromise 8. Maximizing individual freedom Qualities of Law - Fairness: The U.S. legal system is one of the most comprehensive, fair, and democratic systems of law ever developed and enforced.- Flexibility: U.S. law evolves and changes along with the norms of society, technology, and the growth and expansion of commerce in the U.S. and the rest of the world.History of American Law- English Common Law: Developed by judges who issued their opinions when deciding acase. The principles became precedent for later judges deciding similar cases.- 49 states base their legal systems on common law.- Law Court: A court that developed and administered a uniform set of laws decreed by the kings and queens after William the Conqueror. Legal procedure was emphasized over merits.- Court of Chancery (Equity Court): Court that granted relief based on fairness- Equitable remedies were shaped to fit individual situations.- Merchant Court: Courts that were established to administer the “law of merchants”Sources of US Law- Constitutions: The U.S. Constitution established the structure of the federal government. (Legislative, Executive, and Judicial)-The U.S. Constitution and treaties take precedence over all other conflicting laws.-Treaties: A treaty is a compact made between two or more nations.-Codified Law: Statutes are Written law enacted by the legislative branches of federal and state governments. Ordinances are Laws enacted by local government bodies suchas cities and municipalities, counties, school districts, and water districts-Executive Orders: An executive order is an order issued by a member of the executive branch of government.-Regulations and Administrative Orders: The legislative and executive branches of federal and state governments establish administrative agencies to enforce and interpret statutes enacted by Congress and state legislatures. Many agencies regulate business.-Judicial Decisions: A judicial decision is a decision about an individual case issued by a federal or state court.Doctrine of Stare Decisis- Based on the common law tradition, past court decisions become precedent for deciding future cases.- Precedent is a rule of law established in a court decision. Lower courts must follow the precedent established by higher courts.- Stare decisis—Latin for “to stand by the decision”—means adherence to precedent.Priority of Law in the US - The US Constitution and treaties take precedence over all other laws.- Federal statutes take precedence over federal regulations.- Valid federal law takes precedence over any conflicting state or local law.- State constitutions rank as the highest state law.- State statutes take precedence over state regulations.- Valid state law takes precedence over local laws.Chapter 2: Ethics and Social Responsibility of BusinessEthics- A set of moral principles or values that governs the conduct of an individual or a groupTheories of Ethics-Ethical Fundamentalism: A theory of ethics which says that a person looks to an outside source for ethical rules or commands-Utilitarianism: A moral theory which dictates that people must choose the action or follow the rule that provides the greatest good to society-Kantian: A moral theory which says that people owe moral duties that are based on universal rules, such as the categorical imperative “Do unto others as you would have them do unto you”- Rawl’s Social Justice Theory: Social Contract Theory: Moral theory that says that each person is presumed to have entered into a social contract with all others in society to obey moral rules that are necessary for people to live in peace and harmony-Ethical Relativism: A moral theory which holds that individuals must decide what is ethical based on their own feelings about what is right and wrongTheories of Social Responsibility -Maximizing profits: A corporation owes a duty to take actions that maximize profits for shareholders-Moral Minimum: A theory of social responsibility which says that a corporation’s duty is to make a profit while avoiding causing harm to others-Stakeholder Interest: Theory of Social Responsibility which says that a corporation must consider the effects its actions have on persons other than its stockholders-Corporate Citizenship: A theory of responsibility which says that a business has a responsibility to do goodChapter 3: Courts, Jurisdiction, and Administrative Agencies Two Major Court Systems- Federal court system- Court systems of the 50 states and the District of ColumbiaState Court Systems- Limited-jurisdiction trial courts: Courts that hear matters of specialized or limited nature- General-jurisdiction trial courts: Courts that hear cases of a general nature that are notwithin the jurisdiction of limited-jurisdiction trial courts- Intermediate appellate courts: Courts that hear appeals from trial courts- Highest state court: Court that hears appeals from intermediate state courts and certain trial courtsA p p e a l t o U S S u p r e m e C o u r tC r i m i n a l C o u r tC i v i lC o u r tD o m e s t i cR e l a t i o n sP r o b a t eC o u r tJ u v e n i l eC o u r tS m a l l C l a i m sC o u r tM u n i c i p a lC o u r tJ u s t i c e o ft h e P e a c eG e n e r a l J u r i s d i c t i o nT r i a l C o u r tS t a t e A p p e l l a t eC o u r tS t a t e S u p r e m eC o u r tSpecial Federal Courts- U.S. Tax Court- U.S. Court of Federal Claims- U.S. Court of International Trade- U.S. Bankruptcy CourtUS District Courts- District courts are the federal court system’s trial courts of general jurisdiction.- Presently, there are 94 district courts.US Courts of Appeals- US Courts of Appeals are the federal court system’s intermediate appellate courts.- There are 13 courts of appeals.US Supreme Court - Created by Article III of the US Constitution- Highest court in the U.S.- Located in Washington, D.C.- Composed of