Business Law and the

Business Law and the Regulation of Business, 13e Richard Mann, Barry Roberts

(Solutions Manual All Chapter)

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1 © 2020 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.

Part One:

Introduction to Law and Ethics

CONTENTS

Chapter 1 Introduction to Law Chapter 2 Business Ethics

ETHICS QUESTIONS RAISED IN THIS PART

• Are all laws moral? Should all laws be moral? How should morality be determined?
• Are laws always just?
• Which is more important, morality or justice?
• Why is there a difference between the treatment of cases brought under civil law and those brought under criminal

law? Should there be a difference?

ACTIVITIES AND RESEARCH PROBLEMS

• Have students draw a diagram of two overlapping circles, with one circle labeled “Moral” and the other labeled

“Legal.” The area of overlap would be both moral and legal. Then list several controversial topics of current interest (e.g., abortion, genetic engineering, marijuana smoking, etc.) for students to place within an area of the diagram (or outside the circles if it is neither moral or legal). Can any of these issues be absolutely determined to be moral or immoral?

• Have any laws in our country’s history been repealed on the basis of their immorality? Are there any laws still in

existence that should be repealed? Have students discuss their opinions.

• How does American common law differ from English common law?
• Have students write a fictitious case involving questionable ethics in a business decision. 2 / 4

CHAPTER 1 INTRODUCTION TO LAW 2

© 2020 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.Chapter 1

INTRODUCTION TO LAW

• Nature of Law C. Sources of Law
• Definition of Law 1. Constitutional Law
• Functions of Law 2. Judicial Law
• Law and Morals a. Common Law
• Law and Justice b. Equity
• Classification of Law c. Restatements of Law
• Substantive and Procedural Law 3. Legislative Law
• Public and Private Law a. Treaties
• Civil and Criminal Law b. Executive Orders
• Administrative Law
• Legal Analysis

Cases in This Chapter Note: This case is provided as a part of the lesson on teaching students how to brief.Caldwell v. Bechtel, Inc.

Chapter Outcomes

After reading and studying this chapter, the student should be able to:

• Identify and describe the basic functions of law.• Distinguish between (a) law and justice and (b) law and morals.• Distinguish between (a) substantive and procedural law, (b) public and private law, and (c) civil and criminal law.• Identify and describe the sources of law.• Explain the principle of stare decisis.

TEACHING NOTES

Law concerns the relations between and among individuals as those relations affect social and economic order.It affects the rights and duties of every citizen and many non-citizens.Law is both prohibitory, meaning certain acts must not be committed, and mandatory, meaning certain acts must be done, sometimes in a set way. Additionally, law is permissive: certain acts are allowed, but not required by the law.

A. NATURE OF LAW

The law is a continuously changing process of developing a workable set of rules that balance the individual and group rights of an always-changing society.

Definition of Law

Legal scholars have defined law in various ways, including:

• “predictions of the way that a court will decide specific legal questions” • “a rule of civil conduct prescribed by the supreme power in a state, commanding what is right, and prohibiting what is wrong” 3 / 4

CHAPTER 1 INTRODUCTION TO LAW 3

© 2019 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.*** Chapter Outcome *** Identify and describe the basic functions of law.Functions of Law The functions of law are to maintain stability in the social, political, and economic system through (1) dispute resolution, (2) protection of property, and (3) the preservation of the state while at the same time permitting ordered change.

• Disputes are inevitable in a complex society and may involve criminal or noncriminal matters. Law

provides rules to resolve disputes and avoid personal revenge.

• Law protects ownership of property and allows for agreements (contracts) to exchange property. (This

text deals with many aspects of this including contracts, sales, commercial paper, and business associations.)

• Law preserves the state. It ensures that changes are result of elections, legislation, and referenda rather

than revolution, sedition, and rebellion.*** Chapter Outcome *** Distinguish between law and justice. Distinguish between law and morals.Law and Morals Though law is affected by morals, law and morality are not the same. Some actions have no moral implications but have legal sanctions, whereas other actions have no legal sanctions but do have moral implications. Some actions have both moral impact and legal sanction.NOTE: See Figure 1-1: Law and Morals.Law and Justice Law and justice are distinct but interrelated concepts.• Justice may be defined as “the fair, equitable, and impartial treatment of the competing interests and desires of individuals and groups, with due regard for the common good.” • Justice depends on the law, but the law does not guarantee justice, since laws can be unjust. (Think back to “legal” slavery and the “legal” actions of Nazi Germany.)

B. CLASSIFICATION OF LAW

Because the law is vast, it is helpful to organize it into categories such as: (1) substantive and procedural, (2) public and private, and (3) civil and criminal.Basic to understanding these classifications are the terms right and duty. A right is the ability of a person, with the aid of the law, to require another person to perform or to refrain from performing a certain act. A duty is the obligation the law imposes upon a person to perform or to refrain from performing a certain act. Duty and right exist together: a person cannot have a right without some other person (or all persons) having the corresponding duty.

NOTE: See textbook Figure 1-2, which outlines the classifications of law.

*** Chapter Outcome *** Distinguish between (a) substantive and procedural law, (b) public law and private law, and (c) civil law and criminal law.Substantive and Procedural Law Substantive law creates, defines, and regulates legal rights and duties. Procedural law sets forth rules for enforcing those rights that are created by the substantive law.

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