Legal and ethical environment of businessLegal and Ethical Environment of BusinessIntroduction to LawWhat is Law?Opening PollCharacteristics of the LawSlide 7What Is Law?What is Morality?Law and MoralityMorality and EthicsOrigins of Contemporary U.S. LawFederalismSeparation of Power/ Checks and BalancesChecks and BalancesSlide 16Sources of Contemporary LawCommon LawChanges in Common LawSlide 20Slide 21Statutory LawAdministrative LawPower of Agencies -- RulemakingClassification of LawClassifications of LawCase AnalysisBriefing a CaseIRAC Problem ExampleIRACSolution to IRAC Problem© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part. LEGAL AND ETHICAL ENVIRONMENT OF BUSINESSGerlinde Berger-Walliser, JD, Ph.D.,Assistant Professor of Business Law,University of Connecticut© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part. Legal and Ethical Environment of BusinessToday’s class•Introduction to the instructor•Introduction to the course•Review of syllabus•Chapter 1: Introduction to law© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part. INTRODUCTION TO LAWChapter 1 + 4© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part. What is Law?Opening Poll© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part. Opening Poll© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part. Characteristics of the LawLaw is important•Functioning court system = prerequisite for a functioning economyLaw is powerful•Affects all people, from CEO’s to children•Affects most of life, from work to leisure•Establishes rights and obligations•http://www.youtube.com/watch?v=6IIDJshJE3E (Emotion in the courtroom)Law is fascinating•Televised trials often draw a large audience•Legal decisions and the law itself gauge controversy© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part. Characteristics of the LawLaw is complex and ambiguous• Balances competing interests• Examples•FDA flavored cigarettes banhttp://www.youtube.com/watchv=aHvXjgk8PSk •Fighting McDonalds for the right to sithttp://www.nytimes.com/2014/01/15/nyregion/fighting-a-mcdonalds-for-the-right-to-sit-and-sit-and-sit.html?_r=0© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part. What Is Law?http://www.youtube.com/watch?v=Fc8jpc5CckA •___________________•___________________•___________________© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part. What is Morality?© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part. Actions may be legal, but immoral to some people.Actions may be moral, but not required by law.Actions may be required by both moral standards and the law.Owning slaves in Colonial America was legal, but this violates most people’s moral standards today.Helping a hurt person is required by moral standards, but is not mandated by the law.Drunk driving is both immoral and illegal.Law and MoralityLAWMORALITY© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part. Morality and EthicsWhat is Ethics? “The explicit, philosophical reflection on moral beliefs and practices. The difference between ethics and morality is similar to the difference between musicology and music. Ethics is a conscious stepping back and reflecting on morality, just as musicology is a conscious reflection on music. “ http://www.csun.edu/~meh20426/303/6EthicsIntro.pdf© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part. Origins of Contemporary U.S. Law•English Common Law•Protecting rights of the people from the federal government •United States Constitution (1787) •________________•________________•________________© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part. Federalism•Is__________________________________________•http://www.pbs.org/tpt/constitution-usa-peter-sagal/federalism http://truthdive.com/2009/06/23/pizza-and-power-sharing-of-“federalism”.html© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part. Separation of Power/Checks and Balances•"Power should be a check to power." (Baron de Montesquieu, 1685-1755) •http://www.youtube.com/watch?v=U21s1yERk3I Source: http://www.mrvanduyne.com/principles/checksbalances.html© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part. Checks and BalancesThe 2013 government shut down/”gridlock” in Washington – is it Madison’s fault?Source: http://www.csmonitor.com/Photo-Galleries/In-Pictures/Shutdown!-Government-closed#738585© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part. Checks and Balances“Place three individuals in a situation wherein the interest of each depends on the voice of the others, and give to two of them an interest opposed to the rights of the third. Will the latter be secure? The prudence of every man would shun the danger. The rules & forms of justice suppose & guard against it. Will two thousand in a like situation be less likely to encroach on the rights of one thousand?” (James Madison,1821)