Business Law Chapter 1 Exam Review Chapter 1 -Knowing About the Law Business Law-Council Rock HS North Mr. Sherpinsky

Business LawBusiness LawChapter 1 Exam Chapter 1 Exam

ReviewReview

Chapter 1 -Knowing About the Chapter 1 -Knowing About the LawLaw

Business Law-Council Rock HS NorthBusiness Law-Council Rock HS North

Mr. SherpinskyMr. Sherpinsky

Terms and DefinitionsTerms and Definitions

MoralityMorality-involves the values that -involves the values that govern a society’s attitude toward govern a society’s attitude toward right and wrong.right and wrong.


Ethics-Ethics- are the means for are the means for determining what a society’s values determining what a society’s values oughtought to be. to be.

How Ethical Decisions are MadeHow Ethical Decisions are Made

Two (2) basic forms of ethical Two (2) basic forms of ethical reasoningreasoning Consequences-basedConsequences-based

Rightness and wrongness is based only on the results of Rightness and wrongness is based only on the results of the action. An act that produces good consequences is the action. An act that produces good consequences is good and an act that produces bad consequences is bad.good and an act that produces bad consequences is bad.

Rule-basedRule-based Acts are considered either right or wrong. For example: Acts are considered either right or wrong. For example:

Telling the truth is always right, and lying is always Telling the truth is always right, and lying is always wrong. Good consequences do not justify wrong or bad wrong. Good consequences do not justify wrong or bad acts.acts.


Feelings and Opinions The Greatest Good The Golden Rule Ethical Character Traits


Feelings and Opinion Feelings and Opinion don’t always workdon’t always work Some people can “feel” Some people can “feel”

what is right or wrongwhat is right or wrong Others have opinions on Others have opinions on

what is right or wrongwhat is right or wrong The Problem with this:The Problem with this:

If ethics were just a matter If ethics were just a matter of opinion or feelings, than of opinion or feelings, than no one can ever do no one can ever do anything wrong… anything wrong…

Doesn’t sound right does it?Doesn’t sound right does it?

So……..So……..

We also have the We also have the Greatest Good Greatest Good to to guide us in ethical guide us in ethical decision making.decision making. Will the action create the Will the action create the

greatest good for the greatest good for the greatest number of greatest number of people? Ex) Seatbeltspeople? Ex) Seatbelts The problem with this…it is The problem with this…it is

often misappliedoften misapplied

So…So…

We turn to the We turn to the Golden RuleGolden Rule ““Do unto others as you would Do unto others as you would

have them do unto you”have them do unto you” ““Would I want to be treated this way?”Would I want to be treated this way?” The problem with this:The problem with this:

Difficult to fully understandDifficult to fully understand Some abuse the rule by placing their own self Some abuse the rule by placing their own self

interest firstinterest first Empathy: Empathy: The heart of Golden Rule; means The heart of Golden Rule; means

putting yourself in another person’s position putting yourself in another person’s position and understanding how they feel.and understanding how they feel.

Ethical Character TraitsEthical Character Traits

All of the above are easy to follow if All of the above are easy to follow if the person making the ethical the person making the ethical decisions has the necessary ethical decisions has the necessary ethical character traitscharacter traits HONESTYHONESTY JUSTICEJUSTICE COMPASSIONCOMPASSION INTEGRITYINTEGRITY

Figure 1.1 pg. 11Figure 1.1 pg. 11


Honesty-Honesty- Character trait of a person Character trait of a person who is open and truthful in dealings who is open and truthful in dealings with otherswith others


Justice-Justice- Treating people fairly and Treating people fairly and equally.equally. Equity-Equity- Means basic fairness Means basic fairness


Compassion-Compassion- When someone is When someone is sympathetic to the difficulties of sympathetic to the difficulties of others and wants to help alleviate others and wants to help alleviate their problemstheir problems


Integrity-Integrity- When a person is willing When a person is willing to do the right thing, regardless of to do the right thing, regardless of the personal consequences.the personal consequences.


Law-Law- is the system of rules of is the system of rules of conduct established by the conduct established by the government of a society to maintain government of a society to maintain stability and justice.stability and justice. Often referred to as a Often referred to as a ”Code””Code”

Ethical and Legal ConflictsEthical and Legal Conflicts

Ethics and law will Ethics and law will sometimes conflictsometimes conflict Since the law is made by

people it is imperfect. Legislators and judges bring

their own personal opinions and their own views on ethics and morality to the lawmaking process.

Meaning people are bias!

Sources of LawSources of Law

Law in the U.S. comes from 5 Law in the U.S. comes from 5 main sourcesmain sources

1.1. Federal and State ConstitutionsFederal and State Constitutions

2.2. English Common LawEnglish Common Law

3.3. StatutesStatutes

4.4. Court DecisionsCourt Decisions

5.5. Administrative LawAdministrative Law

Constitutional LawConstitutional Law

Constitution-Constitution- Document that spells out Document that spells out the principles by which the the principles by which the government operates.government operates.

Articles, which establish national Articles, which establish national governmentgovernment

Articles I, II, IIIArticles I, II, III 3 branches of the Federal Government3 branches of the Federal Government

Article IVArticle IV Relations among statesRelations among states

Article VArticle V How the constitution can be amended How the constitution can be amended

or changedor changed Article VI – Supremacy ClauseArticle VI – Supremacy Clause

The U.S. Constitution and the laws of the The U.S. Constitution and the laws of the U.S. are the Supreme laws of the landU.S. are the Supreme laws of the land

Article VII - RatificationArticle VII - Ratification

Constitutional LawConstitutional Law

Bill of RightsBill of Rights- - The first ten (10) Amendments of the Constitution were ratified in 1791. They limit the power of government.

The purpose of the The purpose of the Bill of Bill of Rights is to protect two (2) Rights is to protect two (2) kinds of rights:kinds of rights: 1.1. Rights of individual Rights of individual

libertyliberty2.2. Rights of persons Rights of persons

accused of crimes.accused of crimes.

State ConstitutionsState Constitutions

Each state has its own constitutionEach state has its own constitution It is…It is…

More ProtectiveMore Protective Narrower (Scope)Narrower (Scope) More RestrictiveMore Restrictive

Who and what religious group help build and shape Pennsylvania?

Common Law - *except LouisianaCommon Law - *except Louisiana

In early English history, judges or In early English history, judges or Justices traveled around the Justices traveled around the countryside deciding cases. (Virtually countryside deciding cases. (Virtually all courts)all courts)

They shared their decisions with other They shared their decisions with other judges so that they could all share the judges so that they could all share the same law.same law.

These laws were written down to be These laws were written down to be referred back to in deciding cases.referred back to in deciding cases.

These first cases were known as These first cases were known as precedentsprecedents..

It is also called It is also called Stare Decisis Stare Decisis which means let the decision which means let the decision stand.stand.

Statutory LawStatutory Law

Statutes – Statutes – (Made by a body of (Made by a body of lawmakers, “Legislature” Federal & lawmakers, “Legislature” Federal & State)State) Laws passed by the governing body for the Laws passed by the governing body for the

purpose of making laws. purpose of making laws. Designed to Designed to command, prohibit, & declare command, prohibit, & declare

certain things….certain things…. May not pass laws that conflict with the U.S. May not pass laws that conflict with the U.S.

Constitution or would be considered Constitution or would be considered unconstitutionalunconstitutional

Ordinances-Ordinances- Local laws passed by Local laws passed by municipal governing bodiesmunicipal governing bodies


LegislatureLegislature=Body of =Body of lawmakers)lawmakers)

Article 1, Section 8, Clause Article 1, Section 8, Clause 3 3 gives the Congress the power gives the Congress the power to make laws regulating to make laws regulating commerce among states.commerce among states.

Known as the Known as the Commerce Commerce ClauseClause Given Congress very broad Given Congress very broad

powers.powers.


LegislatureLegislature=Body of =Body of lawmakers)lawmakers)Body of Body of lawmakers that has the job lawmakers that has the job of creating statutory law of creating statutory law under the powers given to under the powers given to the federal government by the federal government by Article 1 of the Constitution Article 1 of the Constitution such as the power to tax, such as the power to tax, spend, and borrow money.spend, and borrow money.

Unconstitutional LawsUnconstitutional Laws

Federal and state statutes cannot conflict with the U.S. Constitution, or they may be ruled unconstitutional, or unconstitutional, or invalid. invalid.

Court DecisionsCourt Decisions

Court-made or Court-made or Case LawCase Law

Courts make law Courts make law in 3 waysin 3 ways

1.1. Through common law Through common law traditiontradition

2.2. Interpreting statutesInterpreting statutes3.3. Judicial reviewJudicial review

Court DecisionsCourt Decisions

Court-made or Court-made or Case LawCase Law

Procedural Law - Procedural Law - laws that define laws that define rights and dutiesrights and duties

Positive law - Positive law - law law dictated through dictated through authorityauthority

Administrative LawAdministrative Law

An administrative An administrative agencies or agencies or regulatory regulatory agenciesagencies focuses on focuses on individual activitiesindividual activities Example: Example:

FCC – Federal Communications FCC – Federal Communications Commission – regulates Commission – regulates broadcastingbroadcasting

EXAM on WednesdayEXAM on Wednesday

40 Questions40 Questions True & FalseTrue & False Multiple ChoiceMultiple Choice Drop Down BoxDrop Down Box Fill in BlankFill in Blank

Work Packet is DUE @ Next Work Packet is DUE @ Next Class!Class!

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Business Law Chapter 1 Exam Review Chapter 1 -Knowing About the Law Business Law-Council Rock HS North Mr. Sherpinsky